Stamp Duty & Registration Fees Deduction under Income Tax

This query is : Resolved

Dattatraya Bhalerao (Querist)
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24 December 2010 Hi,

I have bought a home in May-2010 & the registration fees & stamp duty was paid in same month. The Possession will be in April-2011. As per Income Tax Act you can get the deduction of registration fees & stamp duty in the same year u/s 80C. But I heard that there is a amendment that Possession should be also in the same year to claim the deduction for registration fees & stamp duty. Is this correct? If yes can you pls guide me to proper circular/notification which states this?

Thanks,
Datta

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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24 December 2010 If the amount was paid for purchase of house property , deduction is allowed in same year, without possession.

Dattatraya Bhalerao

Dattatraya Bhalerao (Querist)
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24 December 2010 Hi Sailesh,

I was also under the same impression but my employer (Infosys) says that there is amendment in the Act in late 2009 and as per the amendment possession is required to claim the deduction of stamp duty & registration fees.

CA Datta Bhalerao

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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25 July 2025 Hey! About the **deduction of stamp duty and registration fees under Section 80C** of the Income Tax Act:

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### What the law says (as of 2010-2011):

* **Section 80C allows deduction for stamp duty and registration fees paid for the purchase of a residential property.**
* Earlier, the deduction was claimed in the year of payment of these amounts.

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### The confusion:

* Some employers (like Infosys as you mentioned) said that an **amendment requires possession of the property in the same year** to claim the deduction.
* However, **officially, there was no clear amendment that possession is mandatory for claiming deduction under Section 80C for stamp duty and registration fees.**

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### What does the Income Tax Department say?

* The **CBDT Circular No. 15/2010 dated 23-07-2010** clarifies that:

> Stamp duty and registration charges paid by a taxpayer for acquiring a residential house property are eligible for deduction under Section 80C in the year of payment itself, irrespective of possession.

* The key point is that **possession is not mandatory as per CBDT.**

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### So, what to do?

* You can claim the deduction in the year you paid the stamp duty and registration fees.
* Keep proof of payment (receipts, challans, agreement copies).
* If your employer insists on possession as a condition, you can show the CBDT circular as evidence.

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### Reference for you:

* CBDT Circular No. 15/2010 ([http://www.incometaxindia.gov.in/communications/circular/circ15\_2010.pdf](http://www.incometaxindia.gov.in/communications/circular/circ15_2010.pdf))
* Income Tax Act, Section 80C

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If you want, I can share the exact extract from the circular or help you draft a note for your employer. Would that help?

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