In a move to enhance transparency and align property registration with market realities, the Tamil Nadu government has officially adopted the concept of composite value for apartments, villas, and row houses. Notified on June 23, the revised stamp duty framework also empowers valuation committees to update guideline values year-round, replacing the earlier fixed October revision cycle.
The composite value now formally includes both the super built-up area and the undivided share of land, reflecting the true market worth of properties in urban areas where shared amenities significantly influence pricing. While this practice was informally followed since 2023, the new rules bring legal clarity and consistency to property transactions.
Officials clarified that while the revision process remains unchanged, district-level committees will continue to play a role in decision-making. However, the flexibility to revise values at any time allows for more responsive updates based on market dynamics.
Despite high real estate prices in prime areas, guideline values in Tamil Nadu remain relatively low, leading to discrepancies in stamp duty collections. For example, a property worth Rs1 crore in Bengaluru attracts Rs6.65 lakh in stamp duty, while in Tamil Nadu, the same property yields only Rs4.5 lakh due to lower guideline rates. Officials suggest that raising guideline values could allow for lower stamp duty rates, improving fairness and reducing underhand dealings.
The revised rules also direct registrars to consider new parameters under the TN Apartment Ownership Act, 2022, including: Quality of construction, Road width, Proximity to transport and markets and Amenities provided
All district registrars and sub-registrars have been instructed to implement the changes immediately, with online systems being updated and revised values expected to be published soon.
