Tamil Nadu Eases Homebuying Costs by Ending Double Stamp Duty Burden

• Stamp duty paid earlier can now be adjusted, avoiding double charges

• Homebuyers may save ₹2–6 lakh depending on property value

• Move expected to clear delayed registrations and boost market confidence

Chennai: Homebuyers in Tamil Nadu are set to receive significant financial relief after the state government allowed the adjustment of stamp duty and registration charges already paid, effectively ending the issue of double taxation that had troubled buyers for years.

The move has been welcomed by CREDAI Chennai, which described the decision as a long-overdue reform that restores fairness and confidence in the housing market. The government order enables buyers to adjust charges paid under the earlier registration framework, particularly in projects that later shifted to the composite registration system.

During the transition to composite registration, many buyers were required to pay stamp duty twice—once while registering the construction agreement and again at the time of final property registration. This lack of clarity increased the overall cost of home ownership and led to disputes, delays, and stalled registrations.

Mohamed Ali, President of CREDAI Chennai, said the order directly addresses this long-standing concern. “Allowing adjustment of stamp duty and registration fees already paid resolves the core issue of double taxation. It is a fair and necessary corrective step,” he said.

The relief is expected to be most visible in projects where construction agreements were registered before composite registration became mandatory. Such developments had seen registration delays and uncertainty over additional charges. With the new directive, these cases are likely to move toward quicker closure.

According to industry estimates, affected homebuyers—especially first-time buyers—could save between ₹2 lakh and ₹6 lakh, depending on property value and agreement size. These savings are expected to ease pressure on middle-class households at a time when home loan interest rates and construction costs remain high.

Developers believe the decision will also help unlock stuck transactions, improve cash flows, and accelerate sales closures. By removing procedural hurdles, the order is likely to bring greater predictability to the registration process.

Beyond immediate financial relief, the policy is seen as strengthening the composite registration framework itself. CREDAI Chennai noted that addressing hardships from the transition phase encourages wider acceptance of composite registration as a transparent and stable system for future projects.

With end-user demand holding steady in Tamil Nadu’s housing market, stakeholders say measures that reduce transaction costs and uncertainty could further support sales momentum. For homebuyers caught between old and new systems, the decision offers both monetary relief and closure to a long-pending issue.