CREDAI Chennai Welcomes Tamil Nadu Government’s Stamp Duty Adjustment Order, Calls It a Major Relief for Homebuyers

The real estate sector in Tamil Nadu has welcomed a significant policy correction with the State Government allowing homebuyers to adjust stamp duty and registration fees already paid under the earlier registration framework. The move is expected to resolve long-standing concerns around double taxation, particularly during the transition to composite registration.

Welcoming the decision, CREDAI Chennai said the order brings much-needed fairness and clarity for thousands of homebuyers who were adversely impacted during the shift in registration norms.

“CREDAI Chennai welcomes the Government’s order allowing adjustment of stamp duty and registration fees already paid by homebuyers. As this reform is impleme

The real estate sector in Tamil Nadu has welcomed a significant policy correction with the State Government allowing homebuyers to adjust stamp duty and registration fees already paid under the earlier registration framework. The move is expected to resolve long-standing concerns around double taxation, particularly during the transition to composite registration.

Welcoming the decision, CREDAI Chennai said the order brings much-needed fairness and clarity for thousands of homebuyers who were adversely impacted during the shift in registration norms.

“CREDAI Chennai welcomes the Government’s order allowing adjustment of stamp duty and registration fees already paid by homebuyers. As this reform is implemented, it is important that its benefits reach all affected homebuyers, ensuring consistency and fairness across transactions,” said Mohamed Ali, President, CREDAI Chennai.

Addressing the Core Issue of Double Taxation

The order directly addresses the long-standing issue of double levy of stamp duty, which arose when construction agreements were registered under the earlier framework and later subjected to composite registration requirements.

According to CREDAI Chennai, the reform resolves the core hardship faced by homebuyers by permitting adjustment of stamp duty and registration fees already paid, thereby eliminating duplication and restoring confidence in the registration process.

“The order resolves the core issue of double taxation faced by homebuyers by permitting adjustment of stamp duty and registration fees already paid under the earlier registration framework,” Mr. Ali added.

Unlocking Delayed Registrations and Boosting Sales Closures

Projects where construction agreements were registered prior to the composite framework are expected to see faster resolution, especially in cases where registrations were stalled due to ambiguity over double levy.

Industry stakeholders believe this clarity will help unlock delayed registrations, improve transaction velocity, and accelerate sales closures in the coming quarters, benefiting both developers and homebuyers.

Significant Savings for First-Time Homebuyers

One of the most tangible benefits of the order is the direct financial relief to buyers. According to CREDAI Chennai estimates, first-time homebuyers impacted by double taxation stand to save:

• ₹2 lakh to ₹6 lakh on average,

• Depending on property value and construction agreement size.

Such savings are expected to improve affordability, particularly for middle-income and salaried households.

Strengthening Confidence in Composite Registration

Beyond immediate relief, the order is expected to reinforce composite registration as a transparent and stable long-term framework.

“The clarity encourages both developers and homebuyers to make a permanent shift to composite registration for future projects. By resolving the hardship faced during the transition phase, this order strengthens confidence in composite registration as a stable, transparent, and long-term registration framework,” Mr. Ali said.

A Positive Signal for Tamil Nadu’s Real Estate Ecosystem

For MSME developers, allied service providers, and financial institutions, the move sends a strong signal of policy responsiveness and administrative fairness. The decision is expected to improve ease of doing business, reduce disputes, and create a more predictable regulatory environment for the housing sector in Tamil Nadu.

Disclaimer: This article is based on official statements and industry inputs shared by CREDAI Chennai. 
Tags : CREDAI Tamil Nadu