Can Stamp duty taken as a expense

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This discussion clarifies whether stamp duty paid by a builder on a flat can be considered an expense for income tax purposes. The consensus is that it can be claimed as an expense if it's an obligatory payment. Specifically, if the stamp duty is paid during an 'offer period' for sales, it can be treated as an 'offer period sales expense,' provided it's included in the agreement and payment records are maintained.

Tejas Chaudhari

Tejas Chaudhari (Querist)

11 January 2025 If Builder pays stamp duty on flat can same be considered as a expense in Income tax return

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 January 2025 Yes, if it is obligatory.

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 January 2025 this should be helpful

https://taxguru.in/income-tax/itat-allows-stamp-duty-paid-sale-by-builder-section-43ca-triggered.html

Tejas Chaudhari

Tejas Chaudhari (Querist)

13 January 2025 Thank you all the experts for quick response. I am selling one of my unit where In offer period I am paying stamp duty for a flat. So that's why my query was I am paying that stamp duty from my income of flat. So will it be considered as a expense

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 January 2025 You can claim it being 'offer period sales expense.' Include the clause in the agreement, and keep the records of the payment.

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