The price a seller or builder quotes is rarely what you end up paying. In Tamil Nadu, stamp duty and registration fee alone add 9% on a sale deed, calculated on the higher of the guideline value and the agreed price, and new flats can attract GST as well. Add loan fees, legal checks, deposits and move-in costs, and the total can be noticeably higher than the headline figure. Build all of it into your budget before you pay an advance.
Key takeaways
- Tamil Nadu charges 7% stamp duty and 2% registration fee on a sale deed, on the higher of guideline value and consideration.
- Women buyers get a 1% registration fee concession on properties valued up to ₹10 lakh.
- Under-construction flats attract GST; ready homes with a completion certificate and plots generally do not.
- Lenders do not usually fund stamp duty and registration, so pay them from savings.
Government charges
Stamp duty and registration fee
As per the Tamil Nadu Commercial Taxes and Registration department’s schedule, a conveyance (sale deed) attracts 7% stamp duty and 2% registration fee on the market value, which in practice means the higher of the guideline value and the sale consideration. The registration fee was reduced from 4% to 2% from 1 April 2023. From 1 April 2025, the state also gives women a 1% concession on registration fee for houses, plots and agricultural land valued up to ₹10 lakh. Our guide on stamp duty and registration charges in Tamil Nadu covers other deed types.
Flats in Tamil Nadu have often been bought through a sale deed for the undivided share (UDS) of land plus a separate construction agreement with the builder. The construction agreement carries its own stamp duty and registration fee; the published schedule shows 1% stamp duty and 3% registration fee on the construction value from 3 May 2024. Ask your advocate or the sub-registrar exactly how your flat will be registered, because this changes the total.
GST
GST applies to under-construction residential property sold before a completion or occupancy certificate is issued: 1% for homes that qualify as affordable housing (value up to ₹45 lakh and carpet area within the prescribed limit, 90 sq m in non-metro cities such as Coimbatore) and 5% for others, both without input tax credit. One-third of the value is treated as land and excluded. Ready-to-move homes with a completion certificate and resale homes do not attract GST on the sale. See GST on property for details.
TDS
If the consideration is ₹50 lakh or more, the buyer must deduct 1% TDS (the old section 194-IA, renumbered under the Income-tax Act, 2025) and deposit it. This is not an extra cost, as it comes out of the price paid to the seller, but you must file it on time to avoid interest and penalties. Read TDS on property purchase.
Loan-related costs
- Processing fee, charged by the lender, often as a percentage of the loan or a flat amount.
- Legal and technical valuation fees for the lender’s advocate and engineer.
- Mortgage stamp duty and registration fee. In Tamil Nadu, a memorandum of deposit of title deeds attracts stamp duty of 0.5% of the loan and a registration fee of 1%, each subject to a cap.
- Insurance. Lenders often offer property or loan-cover insurance. It can be useful, but you are not obliged to buy the lender’s product; compare before you agree.
- Pre-EMI interest on under-construction homes, where you pay interest on amounts disbursed before full EMIs start.
Checks and professional fees
- Independent legal opinion on title, parent documents and EC. This is money well spent; the bank’s advocate works for the bank.
- Survey or measurement for plots and independent houses, especially where boundaries are unclear.
- Brokerage, if you use an agent. Agree the amount in writing before you start.
- Patta transfer and related fees for updating revenue records after registration.
Builder and society charges on flats and villas
- Car park (covered or open), if priced separately.
- Corpus fund and advance maintenance.
- Club house or amenity charges.
- Electricity and water connection deposits and charges, and in some projects generator backup.
- Floor rise or preferred location charges.
Ask for a written cost sheet listing every item and whether GST applies to it. Under RERA, the price must be based on carpet area, so check what the quoted rate per sq ft covers.
A budgeting table
| Cost | Applies to | How it is calculated |
|---|---|---|
| Stamp duty | All purchases | 7% of higher of guideline value and consideration |
| Registration fee | All purchases | 2% (1% for eligible women buyers on property up to ₹10 lakh) |
| GST | Under-construction homes | 1% or 5% of agreement value, excluding one-third deemed land value |
| Loan processing and legal fees | If you take a loan | As per lender’s Key Facts Statement |
| Mortgage stamp duty and fee | If you take a loan | 0.5% and 1% of loan amount, each with a cap |
| Legal opinion, survey, brokerage | Most purchases | As agreed |
| Deposits and society charges | Flats and gated villas | As per builder cost sheet |
| Interiors, moving, insurance | All homes | Your choice |
Costs after you move in
Budget for property tax to the local body (Coimbatore Corporation within city limits), monthly maintenance, home insurance and repairs. For a resale home, check that the seller has cleared property tax, electricity and water dues up to the handover date.
Frequently asked questions
What are stamp duty and registration charges in Tamil Nadu?
For a sale deed, 7% stamp duty and 2% registration fee on the higher of guideline value and consideration, as per the state’s published schedule. Women get a 1% registration fee concession on property valued up to ₹10 lakh.
Can I include stamp duty in my home loan?
Generally no. RBI rules say stamp duty and registration charges should not be added to the property cost when calculating the loan-to-value ratio, except for homes costing ₹10 lakh or less.
Is GST payable on a resale flat?
No. GST applies to under-construction property sold before a completion or occupancy certificate. Resale and ready homes with completion do not attract GST on the sale price.
Is TDS an extra cost for the buyer?
No. The 1% TDS on property of ₹50 lakh or more is deducted from the amount paid to the seller and deposited with the government. The buyer must file and pay it on time.
This article is general information as of September 2026, not legal, tax or financial advice. Rules and rates change; confirm with a qualified advocate, chartered accountant or the relevant department before you act.
References
- Tamil Nadu stamp duty and registration fee structure (TN Single Window Portal)
- DT Next: TN introduces 1% registration fee concession for women
- RBI Master Circular: Housing Finance
- TNREGINET: Tamil Nadu Registration Department
Want a clear cost sheet before you commit?
Our Coimbatore team can walk you through the full cost of any property we list, from guideline value and registration charges to builder fees, so there are no surprises.
