80c stamp duty deduction for under consruction flat.

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bhjg (Querist)

11 January 2012 suppose and individual purchase a under construciton property and paid stamp duty for its registration can he claim the same as deduction u/s 80c even the property is not errected till the end of the finacial year.

CA Navin Jain

CA Navin Jain (Expert)

11 January 2012 yes claim the deduction under sec 80C

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

11 January 2012 The deduction for stamp duty is governed by section 80C (2)(xviii)(d) of the Income tax Act,1961. The wordings used in clause (d) is 'such house property'. Thus for the meaning of 'such property' reference has to be made to sub clause (xviii) where it says ....the income of which is chargeable to tax under the head income from house property... The property in question is under construction meaning thereby it has no annual value and hence can't be assessed under the head 'income from house property'leading to non satisfaction of the condition for deduction .Conclusion ,therefore, is deduction under section 80C(2)(xviii)(d) can be very well denied on a strict reading of the section.

bhjg

bhjg (Querist)

16 January 2012 CAN anny body provide any relevant case law against the above said issue.

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