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Help regarding 80c

CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)

14 December 2016

Hi friends,

one of my client had purchased flat in june 2015 and sold same property in december 2015

so i can claim deduction u/s 80c for stampduty paid for that property ???

please share advice

thanks

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 14 December 2016

No............

Kalpesh (Chartered Accountant) (349 Points)
Replied 14 December 2016

Yes you definitely claim deduction u/s 80C.

As per Section 80C payment of stamp duty, registration fees and other expenses for the purpose of transfer of such house to the assessee.

CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
Replied 14 December 2016

WHY NO?? DHIRAJLALJI PLEASE ADVICE IN DETAILS THANX

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 14 December 2016

if a house is sold within five years of the end of the financial year in which it was purchased, the tax benefits claimed go out of the window. The tax deduction claimed for the principal repayment, stamp duty and registration under Sec 80C are reversed and the amount becomes taxable in the year of sale. Only the deduction of the interest payment under Section 24B is left untouched.

Read more at:

1. https://www.allbankingsolutions.com/fin-section80c.htm
2. https://economictimes.indiatimes.com/articleshow/52583834.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

5 Like

gopal (student) (212 Points)
Replied 14 December 2016

Dhirajlal is right. very few know about this reversal.

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 15 December 2016

Please note the basic principle about the deduction given under section 80C (earlier section 88 etc.), is INVESTMENT.

Government wants capital for development of our country, and thus encouraged the investment by such deduction/s.

Also note that the minimum lock-in-period for various options available u/s. 80C is 5 years (except equity oriented option where its reduced to 3 years as additional boost).

Now, whether its specifically clarified in each option or not, but the principle of minimum lock in period of 5 years remains intact for all these investments, and hence ITO has right to disallow any such above referred mis-interpretation.