The Tamil Nadu Duty on Transfers of Property (in Municipal Areas) Act, 2009

THE TAMIL NADU DUTY ON TRANSFERS OF PROPERTY (IN MUNICIPAL AREAS) ACT, 2009 (Tamil Nadu Ac !2 "# 2009) S a $m$% "# O&'$c ( a%d R$a("%( The o!ernment ha!e decided to implement the "Tamil Nadu #r$an %oad &nfrastructure Pro'ect" in the Municipalities and Municipal (orporations of the )tate, at an estimated cost of %s* 1000 crores per annum* The pro'ect +ill ha!e multiple sources of financin, +hich includes a portion from the assi,ned re!enue paya$le to Municipalities and Municipal (orporations on account of surchar,e on stamp duty* To ,i!e effect to the a$o!e decision, it has $een decided to enact a separate -e,islation for le!y and collection of a duty on transfer of property in the form of a surchar,e on stamp duty in municipal areas and for creditin, fifty per cent of the amount so collected in the Tamil Nadu #r$an %oad &nfrastructure .und for e/ecution of specific infrastructure scheme, pro'ect, pro,ramme or plan in any Municipality or Municipal (orporation or in a ,roup of Municipalities or Municipal (orporations* * An Act to pro!ide for the le!y and collection of duty on transfers of property in the Municipal areas in the )tate of Tamil Nadu* 0e it enacted $y the -e,islati!e Assem$ly of the )tate of Tamil Nadu in the )i/tieth 1ear of the %epu$lic of &ndia as follo+s 23

The Tamil Nadu Duty on Transfers of Property (in Municipal Areas) Act, 2009

)* S+", i l$ a%d c"mm$%c$m$% *3 (1) This Act may $e called the Tamil Nadu Duty on Transfers of Property (in Municipal Areas) Act, 2009* (2) &t shall come into force on such date as the )tate o!ernment may, $y notification, appoint* 2* D$#i%i i"%(*3&n this Act, unless the conte/t other+ise re4uires,3
(1) " o!ernment" means the )tate

o!ernment 5

(1) "Municipal Area" means the territorial area of a Municipality 5 (2) "Municipality" means (a) the Municipal (orporations of (hennai, Madurai, (oim$atore, Tiruchirappalli, Timnel!eli, )alem, Tiruppur, 6rode, 7ellore, Thoothu8udi or any other Municipal (orporation that may $e constituted under any la+ for the time $ein, in force 5 or ($) "a Municipal (ouncil" constituted under the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act 7 of 1920)*

!* L$-. "# Du . "% ,a%(#$,( "# /,"/$, .*3 There shall $e le!ied a Duty on transfers of property in e!ery Municipal Area, (a)9 in the form of a surchar,e on the Duty imposed $y the &ndian )tamp Act,1:99 ((entral Act && of 1:99) (hereinafter referred to as the )tamp Act) as in force for the time $ein, in the )tate of Tamil Nadu, on e!ery instrument of the description specified $elo+, +hich relates to immo!a$le property situated +ithin the limits of the municipal area 5 and ($) at such rate as may $e fi/ed $y the o!ernment, not e/ceedin, fi!e per centum, on the amount specified $elo+ a,ainst such instrument23 Description of instrument (1) (i) )ale of immo!a$le property* Amount on +hich duty should $e le!ied* (2) The mar8et !alue of the property as set forth in the instrument, and in a case +here the mar8et !alue is finally

The Tamil Nadu Duty on Transfers of Property (in Municipal Areas) Act, 2009

determined $y any authority under )ection <=9A of the )tamp Act, the mar8et !alue as so determined $y such authority* (ii) 6/chan,e of immo!a$le The mar8et !alue of the property of property* the ,reater *!alue as set forth in the instrument, and in a case +here the mar8et !alue is finally determined $y any authority under )ection <=9A of the )tamp Act, the mar8et !alue as so determined $y such authority* ift of immo!a$le property* The mar8et !alue of the property as set forth in the instrument, and in a case +here the mar8et !alue is finally determined $y any authority under )ection <=9A of the )tamp Act, the mar8et !alue as so determined $y such authority*

(iii)

(i!) Mort,a,e +ith The amount secured $y the mort,a,e, possession of immo!a$le as set forth in the instrument* property* (!) -ease in perpetuity of immo!a$le property* An amount e4ual to ode9si/th of the +hole amount or !alue of the rents +hich +ould $e paid or deli!ered in 9respect of the first fifty years of the lease, as set forth in the instrument*

0* A//lica i"% "# c$, ai% /,"-i(i"%( "# S am/ Ac *3 (a) )ection 2= of the )tamp Act, shall $e read as if it specifically re4uired the particulars to $e set forth separately in respect of property situated +ithin the limits of a municipal area and outside such limits 5 ($) )ection >< of the )tamp Act shall $e read as if it referred to the Municipality concerned as +ell as the o!ernment* 1* A//", i"%m$% "# Du . "% ,a%(#$,( "# /,"/$, .*3 .ifty per cent of the Duty on transfers of property collected under this Act in

The Tamil Nadu Duty on Transfers of Property (in Municipal Areas) Act, 2009

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respect of any property situated in a municipal area, shall $e credited to the Municipal fund, +ithin +hose territorial area such property is situated and the $alance of fifty per cent shall $e credited to the Tamil Nadu #r$an %oad &nfrastructure .und (hereinafter referred to as the .und), in such manner as may $e prescri$ed*
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2* P"3$, " ,$m"-$ di##icul i$(*3 &f any difficulty arises in ,i!in, effect to the pro!isions of this Act, the o!ernment may, $y order, pu$lished in the Tamil Nadu o!ernment aBette, ma8e such pro!isions not inconsistent +ith the pro!isions of this Act, as appear to them to $e necessary or e/pedient for remo!in, the difficulty 2 Pro!ided that no such order shall $e made after the e/piry of a period of t+o years from the date of commencement of this Act*
7. P"3$, " 4i-$ di,$c i"%(*3 The o!ernment may, from time to time, issue such directions to the Municipalities or any other authorities as it may deem fit, for ,i!in, effect to the pro!isions of this Act, and it shall $e the duty of the Municipalities or the other authorities to comply +ith such directions* 8. P"3$, " ma5$ Rul$(*6 (1) The o!ernment may ma8e %ules to carryout the purposes of this Act*

(2) &n particular and +ithout pre'udice to the ,enerality of the fore,oin, po+er, such %ules may pro!ide for,
(a) re,ulatin, the collection of Duty on transfers of property 5 (a) deduction of the e/penses incurred $y the

o!ernment in the collection of Duty

on transfers of property 5
($) the distri$ution of the .und amon, the Municipalities 5 ($) any other matter +hich has to $e or may $e prescri$ed*

(;) All %ules made under this Act shall $e pu$lished in the Tamil Nadu o!ernment aBette and unless they are e/pressed to come into force on a particular day, shall come into force on the day on +hich they are so pu$lished*

CCCCCCCCCCCCCCCCCCCCCCCCCCCCCC 1* Pro!iso omitted $y the Tamil Nadu Act ;= of 2010 (+*e*f* 1;9992010)*

The Tamil Nadu Duty on Transfers of Property (in Municipal Areas) Act, 2009

(<) 6!ery %ule made or order or notification issued under this Act shall, as soon as possi$le after it is so made or issued, $e placed on the ta$le of the -e,islati!e Assem$ly, and if, $efore the e/piry of the session in +hich it is so placed or the ne/t session, the -e,islati!e Assem$ly ma8es any modification in any such %ule or order or notification or the -e,islati!e Assem$ly decides that the %ule or order or notification should not $e made or issued, the %ule, order or notification shall, thereafter ha!e effect only in such modified form or $e of no effect, as the case may $e, so, ho+e!er, that any such modification or annulment shall $e +ithout pre'udice to the !alidity of anythin, pre!iously done under that rule or notification or order* 9* R$/$al "# c$, ai% $%ac m$% (*3 En and from the date of commencement of this Act, the rele!ant pro!isions in the enactments mentioned in the )chedule to this Act shall stand repealed* SCHEDULE (See )ection 9) PART7I THE CHENNAI CITY MUNICIPAL CORPORATION ACT, )9)9 (Tamil Nadu Ac I8 "# )9)9) R$/$al "# S$c i"%( )!1, )!2 a%d )!9*3 )ections 1;D, 1;> and 1;= of the (hennai (ity Municipal (orporation Act, 1919 (Tamil Nadu Act &7 of 1919) are here$y repealed* PART 7 II THE MADURAI CITY MUNICIPAL CORPORATION ACT, )99) (Tamil Nadu Ac )1 "# )99)) R$/$al "# S$c i"%( )20, )21 a%d )22*3 )ections 1><, 1>D and 1>> of the Madurai (ity Municipal (orporation Act, 19=1 (Tamil Nadu Act 1D of 19=1) are here$y repealed*

The Tamil Nadu Duty on Transfers of Property (in Municipal Areas) Act, 2009

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PART 7III THE COIM:ATORE CITY MUNICIPAL CORPORATION ACT, )9;) (Tamil Nadu Ac 21 "# )9;)) R$/$al "# S$c i"%( )20, )21 a%d )22*3 )ections 1><, 1>D and 1>> of the (oim$atore (ity Municipal (orporation Act, 19:1 (Tamil Nadu Act 2D of 19:1) are here$y repealed* PART7I8 THE TAMIL NADU DISTRICT MUNICIPALITIES ACT, )920 (Tamil Nadu Ac 8 "# )920) R$/$al "# S$c i"%( ))27A, ))20! a%d ))27C*3 )ections 11>9A, 11>90 and 11>9( of the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act 7 of 1920) are here$y repealed*

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