Who pays stamp duty, the buyer or the seller?

By convention and in most state schedules, the buyer pays stamp duty and the registration fee. The parties can agree otherwise contractually, but the registrar will not register the deed until the duty is paid.

Can stamp duty be added to my home loan?

Most lenders exclude stamp duty and registration from the sanctioned amount, so budget it as part of your own contribution alongside the down payment.

Is stamp duty refundable if the deal falls through?

Some states allow a partial refund on cancelled instruments within a prescribed period, usually with a deduction. The procedure and window are state-specific — apply through the registration department promptly.

Stamp duty and registration charges in India: how they work

Loans & money · 6 min read · Reviewed January 2026

Stamp duty is a state tax on registering a property transfer, charged on the higher of the agreement value or the government circle / ready-reckoner rate. Headline rates run from roughly 4% to 8%, plus a registration charge of about 0.5% to 4%. Both are paid by the buyer, usually before the sale deed is registered, and most lenders exclude them from the loan amount.

What the duty is charged on

Stamp duty is never charged on the price you negotiated alone. The registrar compares your agreement value with the government-notified circle rate (called the ready reckoner rate in Maharashtra, guidance value in Karnataka, and unit area value in Delhi) and levies duty on whichever is higher.

That matters when you buy below circle rate: the duty does not fall with your bargain, and the difference can also attract income-tax consequences for both buyer and seller.

Rates, concessions and cess

States publish a headline rate and then layer on adjustments. Metro cess, local body tax, and urban vs rural jurisdiction all change the final number, and several states charge less when the buyer is a woman or when a woman is a joint owner.

Concessions for women buyers are published in states including Delhi, Haryana, Punjab, Rajasthan, Uttar Pradesh and Odisha.
Registration is often around 1% of value, and some states cap it at a fixed rupee amount.
Maharashtra adds a metro cess in Mumbai, Pune, Nagpur and Thane.

How to budget for it

Treat duty and registration as cash you must have on hand: lenders typically fund the property, not the transfer taxes. On a ₹75 lakh purchase at 6% duty and 1% registration you are looking at roughly ₹5.25 lakh plus ₹75,000 — before legal fees, society transfer charges and brokerage if any.

Stamp duty and registration paid on a residential purchase can be claimed under Section 80C in the year they are actually paid, subject to the overall 80C limit.

Before you pay

Confirm the current rate with the sub-registrar or your state's registration department on the day of registration. Rates change with state budgets and time-limited rebates, and a rate you read online months earlier may no longer apply.

Frequently asked questions

Who pays stamp duty, the buyer or the seller?: By convention and in most state schedules, the buyer pays stamp duty and the registration fee. The parties can agree otherwise contractually, but the registrar will not register the deed until the duty is paid.
Can stamp duty be added to my home loan?: Most lenders exclude stamp duty and registration from the sanctioned amount, so budget it as part of your own contribution alongside the down payment.
Is stamp duty refundable if the deal falls through?: Some states allow a partial refund on cancelled instruments within a prescribed period, usually with a deduction. The procedure and window are state-specific — apply through the registration department promptly.