80c deduction on payment of stamp duty and registration fees

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This query is : Resolved

Dharmendra Dobariya (Querist)

19 February 2014 i purchased residential house 20 month ago and paid more than 100000 as stamp duty and registration fees and claim such amount as deduction us 80c now I want to sell this house.
is there any lockin period for this deduction
whether i have to pay tax on such deduction due to sale of house if there is lock in period?
is there any judgement?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

19 February 2014 Section 80C(5) provides that where the assessee transfers the house property before the expiry of FIVE years from the end of the financial year in which possession of such property is obtained by him,

then the aggregate amount of the deductions so allowed shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year

1. So there is a lock-in period of 5 years.
2. If the property is transferred within 5 years, then the deduction allowed earlier shall be taxable.

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Dharmendra Dobariya

Dharmendra Dobariya (Querist)

19 February 2014 i claimed deduction us 80c rs. 100000 for payment of stamp duty and registration nothing else
still lock in period is applicable
i mean for claim of deduction us 80c for payment of stamp duty and reg. fees lock in period is applicable
if yes then in with AY it is taxable 1) year in which deduction claim. 2) year in which asset sold

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

20 February 2014 The expense for which deduction is claimed is not important. What is important is that the deduction was claimed for a house property.

So the house property cannot be sold within 5 years.

If the property is sold within 5 years, then deduction claimed earlier will become taxable in the year in which the house property is sold.

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