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Stamps and Registration Policy Note 2004-2005 Demand No.11
Technological advancement in service delivery mechanism has transformed the age old institutions into a modern and forward looking service centres. Registration department which has been rendering service to the public during the last 140 years, has fully harnessed the benefit of Information Technology and has upgraded its quality of service. It strives to deliver transparent and speedy service to the Registrants. It is the third highest revenue generating department, next to Commercial Taxes and Prohibition and Excise Departments. 1. a) ACTS ADMINISTERED BY THE DEPARTMENT:
b) ACTS PARTIALLY ADMINISTERED BY THE DEPARTMENT
2. ADMINISTRATIVE SET UP: A. Head Office, Chennai An officer of the Indian Administrative Service (IAS) acts as the Inspector General of Registration . He also functions as, b) Registrar of Chits under the Chit Funds Act, 1982.a) Chief Controlling Revenue Authority under Indian Stamp Act, 1899. c) Registrar under the Tamil Nadu Societies Registration Act, 1975 d) Registrar under the Tamil Nadu Non Trading Companies Act, 1972 The Inspector General of Registration is assisted by the following officers
B. Field Offices 1. Zonal Offices: There are nine Registration zones in the state with offices at Chennai, Vellore, Cuddalore, Thiruchirapalli, Coimbatore, Madurai, Tirunelveli, Salem and Thanjavur. The zones are headed by Deputy Inspectors General of Registration. The overall administration of the zone, review of revenue mobilisation, surprise inspection of Registration offices, conduct of enquiries are some of the functions of the 9 zonal Deputy Inspector General Registration. The Deputy Inspector General is also the joint Registrar of Chits under the Chit Funds Act, 1982. He is also the appellate authority against the order of the Assistant Inspector General of Registration and the District Registrars in respect of appointment of Stamp Vendors. 2.Regional Offices: There are five regional Assistant Inspectors General of Registration with offices at Chennai, Thiruchirapalli, Madurai, Tirunelveli and Coimbatore. Surprise inspection of Sub Registrar Offices, enquiries on petitions, test check of the audit work of District Registrar (Audit) are the primary functions of the Assistant Inspector General of Registration. They also inspect societies and chits. 3.District Level Administrative Offices: The State has been divided into 50 Registration Districts for administrative purpose. Each district is headed by a District Registrar (Administration). Twelve registration districts, where volume of workload is heavy and the nature of work is complicated, are manned by Assistant Inspector General of Registration cadre officers. The District Registrars also act as Registrar of Societies, Deputy Registrar of Chits, Registrar of Marriages and Registrar of Firms. The District Registrars are the appointing authority for stamp vendors. 4.Audit Units The department has the distinction of having a time tested system of internal audit to ensure cent percent audit of all the accounts of the registration offices. There are 45 audit units headed by the District Registrars(Audit). 5. (i) Sub Registrar Offices: There are 558 Sub Registrar Offices in the state. In addition to registration of documents, the Sub Registrar also acts as the Registrar of Marriages under the Hindu Marriages Act, 1955 and the Marriage Officer under the Special Marriages Act, 1954. They also act as Assistant Registrars under the Chit Funds Act, 1982. (ii) Reorganisation of sub-Registrar Offices A proposal is under consideration to make the jurisdiction of Sub Registrar offices/District Registrar offices co-terminus with that of Taluks/Revenue Districts. 6. Registration Training Institute, Chennai. The Institute has been providing training since 1996 to the staff of the department to enable them to acquire functional knowledge of the provisions of the Indian Stamp Act, the Registration Act and other Acts administered by the department. The Institute is headed by a Director in the cadre of Deputy Inspector General of Registration. Two lecturers, one in the cadre of Assistant Inspector General of Registration and another in the cadre of District Registrar, impart training . The institute also imparts training to the staff on STAR (Simplified and transparent administration of Registration) - an IT initiative. The institute has also taken up foundational training programme in the current year on the lines of Bhavani Sagar Institute to Junior assistants of this Department 3. SPECIAL FUNCTIONS / FEATURES: (i) Chief Controlling Revenue Authority: (CCRA) The Inspector General of Registration is also the Chief Controlling Revenue Authority (CCRA) under the Indian Stamp Act, 1899. This responsibility was devolved upon the Inspector General of Registration after the abolition of the Board of Revenue. In the capacity of CCRA , the Inspector General of Registration has the power of control and revision over the functions of the Collector under the Indian Stamp Act, 1899. The CCRA is also the Appellate Authority against the orders of the Collectors under section 47(A) of the Indian Stamp Act. The power of suo motu revision against the orders of the Collectors which are detrimental to the revenue is also vested with the CCRA. ii) Guideline Cell: In order to ensure that the market value is truly set forth in the document, the Registering Officers have been provided with "Guideline Registers". A ‘Guideline Cell’ is functioning under the Chairmanship of Additional Inspector General of Registration (Guidelines). It ensures regular revision and correction of anomalies in the guideline values. In order to ensure fixation of guideline value accurately and scientifically, the respective District Revenue Officers have been included as members of the guideline cell. The District Registrar (Guidelines) in the headquarter is the Secretary of the cell and the respective zonal Deputy Inspector General of Registration and District Registrars are members. Revision of guideline values is undertaken annually, in respect of areas falling under Chennai Metropolitan Development Authority, Municipal Corporations, Municipalities, Town Panchayats and Villages within the notified Local Planning Area as per Sec. 10(1) of the Town and Country Planning Act 1971. In respect of Village Panchayats, revision is done once in three years. The guideline values in respect of all the areas in Tamilnadu were revised on 01.04.03. The guideline values should reflect true market value. Therefore, a comprehensive revision of guideline values is proposed during this year. As recommended by the Tax Reforms & Revenue Augmentation Commission a Committee is to be formed to take up revision of guideline values for the year 2004-2005. To make guideline values public, copies of guide line value registers are supplied to Chambers of Commerce, representatives of Agriculturist Associations and Village Panchayats. The guideline values for the current year are also available on the web site (http://www.tnreginet.net) At present, valuation of building is being done using the schedule of rates adopted under The Tamilnadu Buildings (Lease & Rent) Control Act,1960. The procedure of valuation of building is so complex that no layman can value building on his own. Therefore, a rationalized method of building valuation will be evolved to make the process of valuation simple and transparent. (iii) Intelligence Cell: An Intelligence cell headed by an Additional Inspector General of Registration (Intelligence) with 8 District Registrars, 4 Sub-Registrars and 2 Assistant Executive Engineers is functioning to inspect buildings in order to fix value as well as to prevent evasion of stamp duty. In order to ensure speedy return of documents, registering officers have been authorised to take up field inspection. (iv) Vigilance Cell: A Vigilance Cell comprising of Deputy Superintendent of Police and four Inspectors of Police was functioning to check corruption, malpractices and other irregularities in the department. The cell has been replaced vide G.O.Ms.No:93, CT(W) Dept dt.26.7.2002 by an internal vigilance cell consisting of an Assistant Inspector General of Registration, and a Sub Registrar. 4.Revenue Generation: (i)
Due to effective supervision and vigil exercised by the officers, the revenue
which was REVENUE DETAILS FOR THE PAST 10 YEARS
5. ADMINISTRATIVE REFORMS - ACT AMENDMENTS A. REGISTRATION ACT: 1. The Table of fees under the Registration Act has to be simplified and rationalised. 2. It is proposed to make the "Deposit of Title Deeds" and "Power of Attorney with possession" compulsorily registrable. B. STAMP ACT: States like Maharashtra, Karnataka, Kerala have already enacted their own State Stamp Act. Tamil Nadu is still following the Indian Stamp Act, 1899. Therefore Government have proposed to enact Tamil Nadu Stamp Act, incorporating all recent amendments. 6. REDUCTION IN STAMP DUTY AND TRANSFER DUTY: 1. The Government have, in the past two years, undertaken various measures to enhance investment climate especially in Information Technology sector. The State has emerged as the leading destination for investment, bringing in associated developmental activities. The Government have reduced the stamp duty from 8% in Urban areas and 7% in Rural areas to 6% in all areas and Transfer duty from 5% to 2% in respect of conveyance and all related instruments chargeable with duty at the rate of Conveyance under Schedule I to the Indian Stamp Act,1899. These revised rates have come into effect throughout the State with effect from 21.11.2003. 2.Stamp duty / Registration fee in respect of the following instruments has been reduced or subjected to a monetory capping as announced in Budget for 2004-2005 (i). Simple Mortgage :- Stamp duty reduction from 4% to 1% on loan amount with a maximum of Rs.20,000 and registration fee is subjected to a maximum of Rs.5,000/- (ii). Mortgage with possession :- Stamp Duty has been reduced from 4% to 3% and transfer duty has been reduced from 5% to 1% on loan amount. Registration fee @1% is subject to a monetary capping of Rs.2 lakhs. (iii). Deposit of Title Deeds:- Stamp duty @ 0.5% on loan amount is subject to a maximum of Rs.5,000/. Registration fee on loan amount @1% with a capping of Rs.1000/- has been fixed. 3. As announced in the Budget, rationalised levy of stamp duty for the following instruments is under consideration as amendment to the Articles require passing of Bill by the Legislature. (i) Stamp duty on transactions amongst family members viz., Settlement, Release, Partition, Dissolution of Partnership will be rationalised and reduced to 1% on the market value of the property subject to a ceiling of Rs.10,000/-. The registration fee will be subject to a maximum of Rs.2000. In the case of Partition, the ceiling will be applicable to each share. (ii). The Stamp duty structure on lease will be rationalised as under:
The registration fee@ 1% will be subject to a maximum of Rs.5000 7. TRANSFER DUTY- FOR LOCAL BODIES Transfer duty in respect of sale, exchange, gift, and leases in perpetuity, at the rate of 2% and in respect of Mortgage with possession at 1% is collected in addition to stamp duty. Out of the amount collected as transfer duty, 5 % is retained as collection charges by the department and the remaining 95% of the transfer duty is allocated to the Corporations and Municipalities concerned. In respect of Town Panchayats and Village Panchayats, 3% is taken as collection charges by this department and 97% is allocated to them. 8. SUPPLY OF STAMPS/STAMP PAPERS: Quarterly indents for the required quantity of Judicial and Non-judicial stamps/stamp papers, for the State are prepared by the Superintendent of Stamps and forwarded to India Security Press, Nasik and National Security Press, Hyderabad. The Regional Deputy Director of Treasuries and Accounts is the ex-officio Superintendent of Stamps, who is assisted by an Assistant Superintendent of Stamps. Efforts are being made to bridge the gap between demand and supply. Stamp Vendors are appointed to vend stamps/stamp papers to the public. The activities of the stamp vendors are supervised and regulated by the District Registrars and other higher officials in the Registration Department. The total number of Stamp Vendors in the State as on 31.1.2004 is 4287. All the sub registrars are ex-officio stamp vendors. They are also empowered to affix adhesive stamps on instruments. They are authorized to accept cash under section 41 of the Indian Stamp Act, in lieu of stamp duty without any monetary ceiling in respect of some instruments and add certificates on the instruments for payment of duty. This will reduce hardship to Public in getting stamp papers. The Government have ordered the opening of a central stamp vending unit to facilitate easy availability of Non Judicial stamp papers and stamps for registration. The centralised stamp vending unit has started functioning at the office of the Deputy Inspector General of Registration, Chennai from 24.2.2004. While presenting the demand for 2002-2003, the Honourable Minister for Revenue and Registration announced in the Assembly that action would be taken to check the use of fake stamps. Accordingly, all the Sub Registrar offices were provided with Ultra Violet lamps to identify fake stamps. All the registering officers have been authorized to accept cash in lieu of Stamp papers without any monetary ceiling in respect of some instruments and add certificates on the documents. Payment of stamp duty and registration fees by registrants through banks is under consideration. The maximum face value of Non-Judicial stamp papers is proposed to be fixed at Rs.100/- To overcome the problem of scarcity of stamps and to curb the use of fake stamps, the Government have installed, in the first phase, franking machines in 15 Sub-Registrar Offices. It is proposed to install franking machines in all Sub Registrar offices. It is also proposed to issue licences to the public institutions like Life Insurance Corporation of India, Housing Development Finance Corporation permitting them to use franking machines. 9. DOCUMENT WRITERS AND COPY WRITERS: Under the Tamil Nadu Document Writers Licence Rules 1982, examination is conducted to test the knowledge of applicants in the Registration Act and the Stamp Act. The persons, who pass the examination, are issued with a licence to write non-testamentary documents. There are three categories of licences depending on the territorial jurisdiction i.e., State, District and Sub-district Licence. As on 31.01.04, there are 9078 licensed Document writers. The Indian Registration (Filing of True Copies) Rules 1967, prescribes that every document presented for registration shall be accompanied with a copy of the document. Licences are issued to persons who pass the test prescribed for Copy Writers and Typists. Upto 31.01.04, there are 6656 licensed Copy Writers. 10. PATTA PASS BOOK Sec.5 of Tamil Nadu Patta Pass book Act makes it compulsory for the registering officer to insist production of Patta Pass book at the time of registration of any document relating to transfer of any agricultural land by sale, gift, mortgage, exchange, settlement or otherwise. The Patta Pass book Act is now in force in nine Revenue Districts viz., Vellore, Madurai, Thanjavur, Thoothukudi, Coimbatore, Tiruchirappalli, Karur, Perambalur and Theni. Patta Pass Books have not been issued to all the Pattadars. As a result, the agriculturists are facing difficulties in effecting transactions. In the Budget for 2004-2005, it has been announced that the condition of production of Patta Pass Book at the time of registration as per section 5 of The Tamil Nadu Patta Pass book Act will be relaxed. 11. SOCIETIES: The Inspector General of Registration and all District Registrars (Administration) are the Registrars under the Tamilnadu Societies Registration Act, 1975. The Inspector General of Registration has the power of superintendence over the Registrars, and to hear and pass final orders on appeals . The Government is now considering the proposal to amend Section 49 and other sections of the Tamil Nadu Societies Registration Act,1975 delegating power with the Inspector General of Registration and District Registrars, to grant exemption from applicability of certain sections of the Act, so that the societies can file returns even in case of delay. 12. CHITS: Conduct of chits in Tamil Nadu is governed by the Chit Funds Act, 1982 and the Tamil Nadu Chit Fund Rules . The Inspector General of Registration is the Registrar of Chits. Additional Registrar of Chits in the cadre of Additional Inspector General of Registration and Personal Assistant (Chits) in the cadre of District Registrar assist the Inspector General of Registration in monitoring the activities of Chits. The Deputy Inspectors General of Registration and District Registrars act as Joint Registrar/Deputy Registrar of Chits in their respective jurisdiction. In addition, there are 47 Sub Registrars working as "Inspector of Chits" to attend the work relating to chits in the districts. There are 3 Special Chit Arbitrators for disposal of arbitration cases at Chennai (North), Chennai (South & Central) and Coimbatore. To protect the innocent public from unscrupulous Chit conducting entities, the Government have issued instructions to have the chit groups audited at least once in the currency of the chit. The Department is keeping strict vigil against running unauthorised chits. A "Chit Vigilance Cell" has been formed with the Additional Registrar of Chits as the head to detect unauthorised chits and other irregularities in Chennai. The cell is functioning with the Personal Assistant (Chits) and Chit Inspectors of Chennai – North, South and Central as members. The Government have issued orders to wind up the Tamil Nadu Chit Corporation in February 1993 and the corporation has closed its operation. 13. PARTNERSHIP FIRMS: All the District Registrars are Registrars of firms under the Indian Partnership Act.. A firm can be registered by filing a statement in Form-I. The Registrar files the statement after making necessary entries in the Register of Firms. Any change in the constitution of the firm should also be filed under this Act. To get information on the status of a firm, the Tamil Nadu Partnership (Registration of Firms) Rules 1932 has been amended in such a way that the firms have to compulsorily file declarations of "satisfactory functioning" every year. As on 31/1/2004, there are 4,28,560 Firms registered under this Act. 14. REGISTRATION OF MARRIAGE: Hindu Marriage Act,1955. Registration of marriages solemnised between Hindus is done under the Hindu Marriage Act. Extracts of registered marriages are issued by the Sub Registrars. All Sub Registrars are designated as Registrars of Marriages under this Act. Special Marriages Act, 1954. Marriages of any form are solemnized and registered by Marriage officers under this Act. All Registrars and Sub Registrars have been designated as Marriage officers within their jurisdiction under this Act. Notice of intended marriages has to be filed with the Marriage officer and on the expiry of 30 days, the marriage will be solemnized by the Marriage Officer in case of no objection from any quarters. iii) Indian Christian Marriages Act, 1872. Marriages between Indian Christians are solemnised by licencees under the Act and by priests. Extracts of marriages solemnised under this Act are issued at the office of the Inspector General of Registration, Chennai. 15. IT- INITIATIVES IN REGISTRATION DEPARTMENT. (1) There are 350 registration offices throughout Tamil Nadu, which operate computerized counters to complete the process of registration quickly. Antiquated procedures such as manual copying and indexing of documents, and storage in paper forms in ill-maintained record rooms have all been replaced. Door delivery of certificates, certified copies of documents and extracts on submission of requests on the exclusive website (http://www.tnreginet.net) has become a reality. The salient features of the computerised operations include
(2) REGiNET : REGiNET is a step towards harnessing the power of IT and Communication technologies by establishing a dedicated web based secured network. As a result, the data available in all these offices have become sharable. Encumbrance Certificate of any property can be obtained from any computerised office. A facility for online submission of application for Encumbrance Certificate / copy of registered document/ copies of returns filed by Societies / Chit Companies/ Extract of Hindu Marriages has also been introduced. The information submitted online by the applicants is processed at the respective offices and the Certificate/ extracts are kept ready. The applicants can either collect in person by paying required fee or can opt for door delivery on payment of fee and delivery charges. An exclusive website http://www.tnreginet.net has been launched. Towards ensuring transparency in the registration process, State wide information on guideline value is available on the web site. Besides general informations, the website also provides public utility forms and model draft deeds as downloads. Latest status of more than one lakh registered Societies can be ascertained online. The web site also provides information about the registered chits so that, public can ascertain genuineness of chit groups they propose to enroll. "REGiNET" Centres are functioning at Chennai, Erode and Thoothukudi. The centres are exclusively meant for rendering various services except registration process. With the introduction of IT enabled operations, the Registration Department has remarkably improved its quality of service many folds. The following are the performance indicators:
The future plan of the department is to cover the remaining Sub Registrar offices and to extend connectivity across the State with the provision of access to the Revenue records to enable mutations online. O.
PANNEERSELVAM,
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