The Tamil Nadu government has notified the Fixation of Lease Rent to the Immovable Property of the Religious Institutions Rules, 2026. Through the Rules, the government has fixed the percentage of lease rent for building commercial, site commercial, building residential, site residential, agricultural lands, and topes, among other properties. The rules were notified under Section 34-A of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959.
In case of commercial buildings, the percentage of lease rent would be 0.60% of the market value of the land and the value of the building. For commercial sites, the percentage would be 0.30% of the market value of the vacant site. For residential buildings, it would be 0.05% of the market value of the land and building. The percentage of lease rent for residential sites would be 0.05% of the market value of the land.
For agricultural lands and topes, the percentage of lease rent would be 25% of the normal gross produce or its equal value in money. As for lands let out for the residential purpose to persons who fall under the below-poverty-line category, the percentage of lease rent would be 0.025% of the market value of the land. The lease rent is to be paid on or before the fifth day of every month.
“The Committee, while fixing the lease rent, shall consider the prevailing market rental value i.e., the amount of rent paid for similar types of properties situated in the locality where the immovable property of the religious institution is situated. If the prevailing market rental value is not ascertainable, then the lease rent shall be fixed based on the above rates.”
A Committee would fix the lease rent payable for the lease of immovable property belonging to, or given or endowed for the purpose of, any religious institution. The lease rent would be re-fixed once in three years by the Committee. The State government also amended the Religious Institutions (Lease of Immovable Property) Rules, 1963, to remove Rule 17 that provided for fixing rent to buildings belonging to religious institutions.
Published – January 22, 2026 03:37 pm IST
