State governments in India fix a rate, below which properties cannot be registered in a particular location at the time of title transfer. This rate is known by various names, including guideline value, circle rate, ready reckoner rate, etc. In Tamil Nadu, the usage of guideline value (GV) is more common. The TNREGINET portal allows you to check the guideline value. It is the official portal of the Tamil Nadu Registration Department.
In India, state governments fix a rate below which properties cannot be registered in a particular area at the time of sale or title transfer. This rate is known by various names, such as circle rate, guideline value, ready reckoner rate, etc. In Tamil Nadu, it is known as the TN guideline value or guideline value. In Tamil Nadu, the TNREGINET portal allows individuals to check the TNREGINET guideline value or Tamil Nadu guideline value.
Citizens can easily access many services, such as obtaining property certificates, transfer and registration, etc., by logging on to the TNREGINET portal, the official State Government revenue department portal. The purpose of the TNREGINET portal is to eliminate the difficulty of visiting the Sub-Registrar Office (SRO) and expedite the property transfer and registration process.
Guideline value definition
Guideline value is the minimum value of a property, as fixed by the state government, at which property can be registered. If the sale of a property takes place at a value higher than the guideline value, the registration will be based on the higher value. However, if you buy a property below the guideline value, you will be required to pay stamp duty and registration charges based on this minimum value.
What is TNREGINET?
TNREGINET, or the Inspector General of Registration (IGRS), is the official portal of the Tamil Nadu revenue department that provides all property-related services. Citizens can access various services, such as checking the property guideline value, searching the encumbrance certificate, ascertaining the building value, stamp duty valuation, registration of marriage, registration of the death, etc., online using the TNREGINET platform.
Tamil Nadu guideline value 2023
The guideline value is the minimum value of a property in a particular area, as listed by the Tamil Nadu state government. It is essential to know the guideline value to calculate the fees and duties payable in Tamil Nadu by a property owner. Guideline value is the minimum value of a property, as fixed by the state government, at which the property can be registered. According to the government records (Tamil Nadu Registration Department), guideline value means the estimated market value of the land at which it can be registered. It ideally reflects the property’s actual market value.
If the property is sold at a value higher than the guideline value, the registration of the property will be based on the higher value. However, if the property is sold below the guideline value, the buyer should pay registration charges and stamp duty based on the minimum value.
The Tamil Nadu government fixes the guideline value for each area in the state. The guideline values are based on the streets for well-developed residential areas. The guideline value is fixed based on the survey number of the property for lands/properties that have not been formed into streets.
How to check Tamil Nadu land guideline value?
Step 1: Visit the official TNREGINET portal.
Step 2: Click on the ‘Guide Value’ tab on the homepage
Step 3: Click on ‘From 01-04-2023’
Step 4: Select the street or survey number, select village wise or land classification board, enter the details such as region, office of the registrar, registration village, and land classification and click the ‘Search’ button.
Step 5: The guideline value will appear on the screen.
How is property guidance value calculated?
To arrive at the value of property based on the Guideline Value, which is the minimum value of a property in Tamil Nadu at which a property can be registered, the following formula applies:
Property Value = Guideline value (in Rs per sq metre) X Built-up area in sqm
The guideline value can be determined based on the property location and type. The market value of a property is calculated by taking its built-up area and Guideline value into consideration.
For example, property area = 800 sqm
Guideline value = Rs 10,000 per sqm
The property value = 10,000 X 800 = Rs 80 lakh
Impact of difference between property guideline value and market values
Guideline value is the estimated market value of a property as per the government records. In an ideal scenario, it should be the same as the property’s true value in the market. However, guideline values are lower than the market value in most cases. There are some exceptional cases where one may find the guideline value to be more than market value.
There are several land valuation systems to arrive at the true value of land. Nowadays, one can easily estimate the value of a property or land using property value calculator online.
So, it becomes necessary to understand the effects of the difference between property guideline value and market values.
Income tax implications
If the sale of a property done at a value less than the guideline value, in such case the seller and buyer would incur a loss. This impact is due to the provision of Section 56 (2) (vii) (b) under the Income Tax Act. If the guideline value is higher than the purchase consideration by over Rs 50,000, the difference amount is considered as ‘income from other sources’ under the act. This provision applies in case the assessee obtains the property as Capital Asset and not as stock in trade.
Property registration fees in Tamil Nadu
| Document type | Stamp duty in Tamilnadu | Registration charges in Tamilnadu |
| Conveyance (Sale) | 7% of the market value of the property | 4% of the market value of the property |
| Gift | 7% of the market value of the property | 4% of the market value of the property |
| Exchange | 7% of the market value on the property that has the greater value | 4% of the market value on the property that has the greater value |
| Simple mortgage | 1% on the loan amount, subject to a maximum of Rs 40,000 | 1% on the loan amount, subject to a maximum of Rs 10,000 |
| Mortgage with possession | 4% of the loan amount | 1%, subject to a maximum of Rs 2,00,000 |
| Agreement to sale | Rs 200 | 1% on the money advanced (1% on total consideration if possession is given) |
| Agreement relating to construction of building | 1% on the cost of the proposed construction or the value of construction or the consideration specified in the agreement, whichever is higher | 1% on the cost of the proposed construction or the value of construction or the consideration specified in the agreement, whichever is higher |
| Cancellation | Rs 1000 | Rs 50 |
| Partition among family members | 1% on the market value of the property, subject to a maximum of Rs 40,000 for each share | 1%, subject to a maximum of Rs 10,000 for each share |
| Partition among non-family members | 4% on the market value of the property for separated shares | 1% on the market value of the property for separated shares |
| i) General Power of Attorney to sell the immovable property | Rs 100 | Rs 10,000 |
| ii) General Power of Attorney to sell the immovable property (Power is given to a family member) | Rs 100 | Rs 1,000 |
| iii) General Power of Attorney to sell the movable property and for other purposes | Rs 100 | Rs 50 |
| iv) General Power of Attorney given for consideration | 4% on the consideration | 1% on the consideration or Rs 10,000, whichever is higher |
| Settlement in favour of family members | 1% on the market value of the property but not exceeding Rs 40,000 | 1% on the market value of the property, subject to a maximum of Rs 10,000 |
| Settlement in other cases | 7% on the market value of the property | 4% on the market value of the property |
| Partnership deed where the capital does not exceed Rs 500 | Rs 50 | 1% on the capital invested |
| Partnership deed (other cases) | Rs 1000 | 1% on the capital invested |
| Memorandum of Deposit of Title Deeds (MODT) | 0.5% on loan amount, subject to a maximum of Rs 30,000 | 1% on loan amount, subject to a maximum of Rs 6,000 |
| i) Release among family members (coparceners) | 1% on the market value of the property but not exceeding Rs 40,000 | 1% on the market value of the property, subject to a maximum of Rs 10,000 |
| ii) Release among non-family members (co-owner and benami release) | 7% on the market value of the property | 1% on the market value of the property |
| Lease below 30 years | 1% on the total amount of rent, premium, fine, etc. | 1%, subject to a maximum of Rs 20,000 |
| Lease up to 99 years | 4% on the total amount of rent, premium, fine, etc. | 1%, subject to a maximum of Rs 20,000 |
| Lease above 99 years or perpetual leave | 7% on the total amount of rent, fine, premium of advance, if any, payable. | 1%, subject to a maximum of Rs 20,000 |
| Declaration of trust (if property is there, it would be considered as sale) | Rs 180 | 1% on the amount |
| Articles of Association | Rs 500 for every 10 lakh on authorised capital; maximum Rs 5 lakh | |
| Copy or Extract | Rs 100 | |
| Counterpart or Duplicate | Rs 500 | |
| POA | Rs 500
Rs 500
Rs 1,000
Rs 1,000 | |
| POA to sell immovable property for consideration | 4% on market value | |
| POA to sell immovable
property in favour of family member | 1000 | |
| POA to sell immovable property in favour of person who is not a family member | 1% on market value of property | |
| Reconveyance of Mortgaged Property | Rs 1,000 | |
| Security Bond | Rs 500 | |
| Revocation of Settlement | Rs 1,000 | |
| Surrender of lease | Rs 1,000 | |
| Transfer between Trustee to Trustee or Beneficiary
of same Trust | Rs 1,000 | |
| Declaration of Trust | Rs 1,000 | |
| Revocation of Trust | Rs 1,000 |
Guideline value Tamilnadu 2024: Latest updates
Property guideline in Tamil Nadu to be revised
May 14, 2024: The Market Value Guidelines (MVG) of immovable properties in Tamil Nadu is expected to be revised, considering the increase in the cost of land across the State, Registration Department sources said as cited in a report by The Hindu.
The process was initiated soon after the Madras High Court quashed a circular of the Inspector-General of Registration to collect stamp duty and registration charges on the basis of the guideline values fixed for lands in 2012, without following a decision taken in 2017 to reduce the value by 33%.
Tamil Nadu increases stamp duty for 20 legal instruments
May 14, 2024: The Tamil Nadu government has increased stamp duty on 23 legal instruments, with effect from May 3, 2024. The move is aimed at curbing the expenditure of printing papers for instruments of low denominations. This is the first time in two decades that the state government has hiked stamp duty on various legal instruments, including adoption deed, affidavit, lease and power of attorney to sell property.
Tamil Nadu announces new property values for streets, roads
January 4, 2024: The Tamil Nadu government has fixed the composite value for property on more than three lakh roads and streets across the state, according to a TOI report. The composite value of nearly 1.5 lakh streets and roads in Chennai has been announced. The highest value is Rs 28,500 per square foot (sqft) in and around the Boat Club area. The registration charges are 7% of the composite value. For a flat of 1000 sqft area located on St Marys Road in Mylapore, a buyer must pay registration charges of Rs 13 lakh. This will be at 7% composite value which has been fixed at 15,000 per sqft. In north Chennai’s Muthialpet, from Thambu Street to Mooker Nallamuthu Street, the rate has been fixed as Rs 16,500 per sqft. For Bazullah Road in T. Nagar, the composite value is Rs 16,500 per sqft. The composite value is lowest in suburban Tambaram, starting at Rs 3,800 and rising to around Rs 6,000.
FAQs
What is the impact of guideline value revision on property buyers?
It is believed that any cut in guideline value will bring down property prices. However, property value is also determined by other factors, such as registration charges.
When was the Guideline Value in Tamil Nadu last revised?
Guidance Value for properties in Tamil Nadu was last revised in 2017.
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