T.N. government sets new fee for property transfer returns and leases

The Tamil Nadu government has fixed a fee of ₹500 for residential buildings and ₹1,000 for non-residential buildings for filing returns related to the transfer of property, as per amendments to the Tamil Nadu Urban Local Bodies Rules, 2023.

The changes were notified in the Tamil Nadu Government Gazette Extraordinary on December 16, 2025, by the Municipal Administration and Water Supply Department through Government Order 480, under Section 198 of the Tamil Nadu Urban Local Bodies Act, 1998.

New sub-rule

The amendment inserts a new sub-rule making it mandatory for any return filed for property transfer to be accompanied by the prescribed fee.

The returns must now contain details of ownership, land extent, plinth area, type of construction, nature of use, building permission particulars, occupancy certificate, date of construction, date of occupation, photographs of the property and other details sought through the self-assessment system, and such rectification shall be made by the commissioner within two years as specified in section 98 of the Act.

Another amendment prescribes renewal fees for municipal leases every three years, ranging from ₹2,500 for premises up to 100 sq. ft. to ₹10,000 for premises measuring 1,001 sq. ft. and above, subject to execution of a fresh agreement with the municipality.

Buildings owned by the State government, Central government, municipalities, panchayats and statutory bodies are exempted from incentives and interest on delayed tax payments.

The rules allow transfer of municipal lease rights to legal heirs on payment of outstanding dues and a ₹5,000 name transfer fee.

In the case of agricultural land leased for cultivation, municipal councils may grant leases for a period of up to 20 years, with provision for longer leases in “special and extraordinary circumstances” with government approval.