DEDUCTION U/S 80C OF STAMP DUTY PAID FOR PURCHASE OF PLOT.
This query is : Resolved
22 November 2008
I HAVE PURCHASE a PLOT ON DEC 2007& PAID STAMP DUTY & REGISTRY CHARGES RS. 78540.THE CONSTRUCTION OF HOUSE ON THE PLOT WILL START ON 2009.MY QUESTION IS WHETHER I CAN CLAIM DEDUCTION U/S 80C FOR STAMP DUTY & REGISTRY CHARGES IN THE A.Y 2008-09.
22 November 2008
No you cannot claim.
22 November 2008
Section 80C doesnot permit you for a deduction for the said amount.
22 November 2008
BUT IT IS WRITTEN IN THE BOOK THAT STAMP DUTY REGISTRY CHARGES& OTHER EXPS FOR THE PURPOSE OF TRANSFER OF SUCH HOUSE PROPERTY TO THE ASSESSE
22 November 2008
True-Stamp Duty, Registration fee and other expenses for transfer of house property qualify for Deduction u/s 80-C but you would be able to claim Deduction in FY in which construction of house is completed and you start returning the income under Income from House Property either as self-occupied or let out.
In your case, Registration expenses are incurred in Dec 07. House construction will commence as per your expectation) in 2009.
So as far as FY 2007-08 (AY 2008-09) is concerned, investment is in the form of land or site only and not in the form of house property.
Even in the year of completion, say, FY 2010-11, you will not be entitled to claim Deduction u/s Sec-80C. If you could prove that you had taken loan for payment of Registration Expenses and repaid it during FY 2010-11 in which house is completed and you return the income from house property, you could be to able to claim Deduction only to the extent of repayment (subject to limits prescribed)
To put it simply, so long as you hold the asset in the form of site or plot or land, you will not be able to claim Deduction; otherwise don't you think that every body would do the same and try to seek exemption and later take a stand that they changed their mind for construction
Nevertheless, keep record of Registation expenses safe. It will help you in including it under 'acquisition cost' when need arises, if ever property is sold away.
In your case, Registration expenses are incurred in Dec 07. House construction will commence as per your expectation) in 2009.
So as far as FY 2007-08 (AY 2008-09) is concerned, investment is in the form of land or site only and not in the form of house property.
Even in the year of completion, say, FY 2010-11, you will not be entitled to claim Deduction u/s Sec-80C. If you could prove that you had taken loan for payment of Registration Expenses and repaid it during FY 2010-11 in which house is completed and you return the income from house property, you could be to able to claim Deduction only to the extent of repayment (subject to limits prescribed)
To put it simply, so long as you hold the asset in the form of site or plot or land, you will not be able to claim Deduction; otherwise don't you think that every body would do the same and try to seek exemption and later take a stand that they changed their mind for construction
Nevertheless, keep record of Registation expenses safe. It will help you in including it under 'acquisition cost' when need arises, if ever property is sold away.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- FEMA regulation Act. for inward remitance
- Grand in aid
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
