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Stamp duty and registration exemption in income tax

Vikrant (Business Analyst) (25 Points)

31 December 2013

Hi All, Recently I bought resale flat in Pune for which I paid 2,30,000rs stamp duty and 30,000rs registration.
As far my knowledge this amount can be put in "80C" only which has cap of 1,00,000rs. Does this mean rest of the amount cannot be used in income tax exemption? Or is there any other section under which I can state this amount? Please help me understand conditions for stamp duty in income tax.

Thanks in advance

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4 Replies

Shyam C.Pujara (Student (C.A Final)) (177 Points)
Replied 01 January 2014

Hi, Vikrant

First of all you can not get deduction of stamp duty or registration u/s 80c, but u can get these full payment as a part of cost of acqusition while calculating capitalgain.

Aditya (Dadar) (67 Points)
Replied 01 January 2014

I agree with shyam.There is no deduction under section 80 for payment of stamp duty.Deduction is there under sec 80 only for principal repayment of housing loan.Also the same exps can be claimed while calculating capital gain when u sell the flat

Vikrant (Business Analyst) (25 Points)
Replied 01 January 2014

I am confused. I read in another thread that stamp duty and registration is allowed under 80C.

/forum/stamp-duty-deduction-under-section-80-c--275795.asp#.UsPP6fQW1nE

Sindhuja (Final Student) (113 Points)
Replied 01 January 2014

Hi, Vikrant,

You are right. Sec.80C allows deduction for stamp duty & registration expenses on purchase or construction of a residential house property. The conditions to be statisfied are

income from such house is to be brought to tax(at present or in future) under the head House property.
Only the registered owner of the property can claim deduction.
no deduction for the same expenditure under section 24.
expense should not be in respect of addition or alteration to, or renovation or repair of, the house property

I wish to thank you virkant, for making me to note an additional point in the basic section.

For your reference, i have extracted the section here

Hope you would be clear

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