The buyer typically pays both stamp duty and registration charges as part of the property transfer process. The stamp duty and registration charges are compulsory government taxes for transferring immovable property through a sale deed. Although laws don’t mandate a fixed payer, generally, buyers are responsible for it.
Who is Responsible for Paying Stamp Duty or Registration Charge on Property Sale in India?
Buyer. This is because these costs are associated with registering the property in the buyer’s name and legally cementing ownership with the sub-registrar. To legally purchase the property, a buyer must pay several taxes in addition to the amount paid to the seller. These two are the most prevalent cost categories.
Stamp duty is calculated as a percentage of the property’s market value or circle rate, whichever is higher. However, this fee varies by state and circumstances (e.g., gender, rebates), typically ranging from about 5% to 7% or more. Stamp duty charges ensure the sale deed is legally valid and enforceable.
Registration charges are a separate fee paid to the government under the Registration Act, 1908, generally amounting to around 1% of the property’s value in many states, like Uttar Pradesh.
The buyer usually pays stamp duty & registration fees at the time of property transfer to officially record the deed.
Some negotiations between buyer and seller may shift who pays, especially in competitive markets or builder-led sales, where the builder may offer to absorb costs (often factored into pricing). Negotiation depends on the parties’ agreement and is not a government rule.
Payment is required before or during registration at the sub-registrar’s office to ensure legal ownership in the buyer’s name. Also, Section 3 of the Indian Stamp Act of 1899 requires the government to collect these fees, which are used to both verify the sale agreement and maintain a record of the land. Hope this answers your query.
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Who Pays Stamp Duty And Registration Charges During Property Sale?
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2026-01-13T10:02:37+00:00 2026-01-13T10:02:39+00:00Comment
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