Taxes When You Buy or Sell Commercial Property in Tamil Nadu: Stamp Duty, GST, TDS and Capital Gains

Quick links: Stamp duty · GST · TDS · Capital gains · FAQs · Sources

Buying a shop or office in Tamil Nadu involves the same stamp duty as a home, but GST works differently, and the tax when you sell has its own rules. Here's what applies at each stage.

This is general information, not tax advice. Rates change; confirm current figures with TNREGINET and your chartered accountant.

Stamp duty and registration

• Stamp duty: 7% and registration fee: 4% on a sale deed, calculated on the guideline value or the price, whichever is higher (Housing.com, Nov 2025; HomeFirst, Jun 2026).
• HomeFirst notes the percentages are generally the same across property types, but guideline values differ by property type, so the rupee amount for commercial property can be different.
• Check the guideline value for the property on TNREGINET before agreeing a price. See how to check guideline value and our stamp duty guide.

GST on commercial units

GST applies only to under-construction property bought from a developer. According to the GST Council's real estate FAQs:

• A completed property with a completion or occupancy certificate is outside GST, as are resales by owners who aren't builders (BUSY, Sep 2026).
• BUSY reports no change to these real estate rates after the GST rate changes of 22 September 2025.
• The GST Council notes its FAQs don't have the force of law; the notifications prevail. Confirm the rate your developer is charging, and why.

Compare: for homes, see our guide to under-construction vs ready-to-move flats.

TDS when you buy

• If the price is ₹50 lakh or more, the buyer deducts 1% TDS and pays it to the government. From 1 April 2026 this is under section 393(1) of the Income-tax Act, 2025, replacing section 194-IA (TDSMAN).
• It applies to any immovable property other than rural agricultural land, so it covers shops and offices.
• The ₹50 lakh test is on the total price, even if each buyer's or seller's share is below it (TDSMAN).
• If the seller is a non-resident, different TDS rules apply. Consult your CA.

Capital gains when you sell

• Long-term gains on property are taxed at 12.5% without indexation. For property bought before 23 July 2024, there is an option of 20% with indexation (ClearTax).
• Short-term gains are taxed at your income tax slab rate (ClearTax).
• Exemptions: section 54F covers selling an asset other than a residential house (such as a shop) and investing in a residential house; section 54EC covers investing gains from land or buildings in specified bonds. Section 54 applies only to selling a residential property (ClearTax). Conditions apply, so plan with your CA before you sell.