stamp duty deduction.

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CA Unnati (Querist)
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23 February 2017 can I include stamp duty paid on purchase of property in cost of acquisition while calculation of capital gains. even if I have taken its deduction under section 80 c in the year of purchase.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 February 2017 Yes,stamp duty can be added to arrive the cost for the purpose of CG/

CA Unnati

CA Unnati (Querist)
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23 February 2017 what if I have taken its deduction in the year of purchase us 80c.. then also I can add it in cost of acquisition in the year of sell.. and indexed it?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Good question! Here's the clarification:

* **Stamp duty paid on purchase of property** is definitely part of the **cost of acquisition** for capital gains calculation.
* **Section 80C deduction** is allowed only on **stamp duty and registration charges related to your own residential property**, but **only up to Rs. 1.5 lakh in total for specified expenses** in the year of purchase.
* Importantly, **taking a deduction under Section 80C for stamp duty in the year of purchase does NOT disallow you from adding the same stamp duty amount to the cost of acquisition for capital gains calculation when you sell the property later.**

**In other words:**

* You can **claim deduction under 80C in the year of purchase** (subject to limits).
* When you sell, you can **add the full stamp duty amount (including the part claimed under 80C) to the cost of acquisition**, and then apply indexation for long-term capital gains calculation.

This is because Section 80C deduction and capital gains cost basis serve different purposes — 80C is an exemption/deduction on income, while capital gains cost affects gain computation on sale.

Let me know if you want a numerical example to see how this works!

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