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Deduction u/s 80(c)

v.r. mukunthan (Sr. Manager - Finance & Accounts ) (60 Points)

05 February 2016

hello seniors, i have purchased a plot in january 2016 and the stamp duty is around rs.15000/- construction of house will be after 3-5 years. shall i claim the stamp duty paid u/s. 80(c). please clarify. thanks in advance.

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12 Replies

Gourav (44) (70 Points)
Replied 05 February 2016

Deduction under section 80C shall be allowed on payment basis and the assessee must be the owner of the property.So to claim deduction under section 80C assessee must made the payment with in that financial year and must hold the possession of the property.So two conditioned must be satisfied in order to claim deduction under section 80C.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 05 February 2016

Hello,
Stamp duty paid for residential plot does not qualify for tax deduction under Section 80C.

CMA Poornima Madhava (CMA) (13097 Points)
Replied 05 February 2016

I agree with Vishal since plot as such is not regarded as residential property

Rahul Surve (Proprietors) (48 Points)
Replied 05 February 2016

Also I agree with Vishal & Poornima

Sivaramakumar (GM-ACCOUNTS) (142 Points)
Replied 05 February 2016

To summarise:

it is allowed only for a residential property purchased by the assessee in the financial year in which stamp duty is suffered by the assessee from his own sources for getting the residential property transfered in his name.

Hence transfer of ownership in the name of assesse does not take place in case of construction of a residential house in a plot owned by the assessee, and stamp duty and fees paid on plot does not amount to mean a residential property. As such you are not entitled to claim dedction u/s 80 C.

vijaydeepsingh (article) (71 Points)
Replied 05 February 2016

Deduction under section, 80C is allowed on only principle portion of loan taken from banks,financial institutions etc. Amount paid through self is not allowed as deduction

srikumar (audit staff) (1203 Points)
Replied 06 February 2016

Yes u can claim rs.15000 for the ay 2016-17 at stamp duty

srikumar (audit staff) (1203 Points)
Replied 06 February 2016

Sorry, incorrect query said, residential plot does not accept deduction for stamp duty. Only residential house only accept. Only one residential house property qualify for stamp duty purpose, no more house property occupied previously

manisha (cs) (1118 Points)
Replied 06 February 2016

Do sec 80 apply to stamp duty only

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 06 February 2016

Hello @ Manisha
The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

Principle component of home loan also qualify for deduction u/s 80C.

Rajesh Kumar Gupta (Senior Divisional Manager) (714 Points)
Replied 06 February 2016

Yes, one can claim deduction u/s 80C upto 1.5 lacs in the FY in which stamp duty was paid. But it should have been from own sources. What happens amount raised as loan is 75-80% of the value of property, value includes 6-7% as stamp duty, so safely stamp duty gets paid presumably from pocket.