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Arun   31 January 2023

Registration of lease cancellation - tamil nadu

Dear Sir/Madam,

I wanted to cancel a lease which was executed on 23/12/22 in coimbatore, Tamil Nadu. In the tnreginet.in portal the stamp duty and registration fee for cancellation is Rs.50 each - total Rs.100.

The registration department is asking me to pay Rs.20,000 as Registration fee for canceling the lease deed. I was told, in portal it will be like that only, if we don't pay the 20k, we will get audit remark.

What is the law / article /section under which the "Registration fee" for "lease cancellation" is determined.

 



Learning

 9 Replies

P. Venu (Advocate)     31 January 2023

Stamp duties varies from State to State. To my knowledge, it is not mandatory that cancellation of lease be registered.

2 Like

kavksatyanarayana (subregistrar/supdt.(retired))     31 January 2023

Yes. Stamp duties vary from one state to another State.  Cancelation for other documents is Rs.50/- + RS.50/- as you said. But for the lease, it will be treated as the surrender of the lease deed but not a cancellation.  Under Article of 51 of Schedule-I under the stamp act, the duties have to be paid as told by the SR.

1 Like

Advocate Bhartesh goyal (advocate)     31 January 2023

Yes,Cancellation of lease deed id not mandatory to be registered .cancel lease deed just issuing registered notice to other party of lease deed.

2 Like

Dr J C Vashista (Advocate)     01 February 2023

I agree with experts hereinabove, cancellation of lease deed is not mandatory to be registered.

Stamp duty is a State subject which differ from state to state. However, in any case it cannot be Rs. 20,000/- as stated by you.

1 Like

Arun   01 February 2023

@ kavksatyanarayana (subregistrar/supdt.(retired))

Dear Sir,

Thank you for the reply.

What I was told is Rs.20,000 as Registration Fee for lease cancellation. Can you please send me the Link for this paticular Article, defining the Registration fee for lease cancellation / surrender. 

 

As you said i checked in the surrender of lease - Tamil Nadu Stamp Bill, 2013,  under THE SCHEDULE.
STAMP DUTY ON INSTRUMENTS. (section 3) Article 52 - Surrender of lease - mentions - Two hundred rupees for stamp duty. Links that I reffered is below,

 

https://www.stationeryprinting.tn.gov.in/extraordinary/2013/117-Ex-IV-1.pdf

https://prsindia.org/files/bills_acts/acts_states/tamil-nadu/2013/2013TN16.pdf

kavksatyanarayana (subregistrar/supdt.(retired))     01 February 2023

the maximum stamp duty is Rs.200/-.

1 Like

Arun   01 February 2023

@ kavksatyanarayana (subregistrar/supdt.(retired))

Dear Sir,

Thank you for the reply.

What the Registration Fee for lease cancellation. Can you please send me the Link for this particular Article, defining the Registration fee for lease cancellation / surrender?   

 

@ Dr J C Vashista (Advocate)@ Advocate Bhartesh goyal (Advocate)

@ P. Venu (Advocate)

Thank you for the reply.

Dear Sir,

I have registered the lease on 23/12/2022 for a period of 15years and the Tenant has not taken possession of the space and no rent transfer has been done. With mutual consent of the tenant i had applied for lease cancellation (with letters of communication & consensus between both parties) as, I want to lease out the same space for another tenant.

------When the registered tenancy period of the earlier tenant is not been completed, can one rent out the same space to some other tenant without doing the lease cancellation?

sahithi reddy   01 February 2023

Yes. The cost of stamps varies from state to state.. But in the case of the lease, it will be regarded as the lease deed's surrender rather than its cancellation. The duties must be paid as instructed by the SR in accordance with Article 51 of Schedule-I of the Stamp Act.

Arun   02 February 2023

@sahithi reddy
Thanks for the Reply.

Dear Madam,

What the Registration Fee for lease cancellation. Can you please send me the Link for this particular Article, defining the Registration fee for lease cancellation / surrender?

For stamp duty, I have found the details in the below link,

https://prsindia.org/files/bills_acts/acts_states/tamil-nadu/2013/2013TN16.pdf


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