House Purchase Expenses : Registration Fees

If we are purchasing a house and paying stamp duty and registration charges on it. We can claim deduction under section 80C. Then how much amount gets added to the cost of house for income tax purposes in books of accounts.

Eg - House purchased of Rs. 50 L. Stamp duty & Reg. fees paid Rs. 5 L.

80C deduction taken 1.5 for stamp duty and registration fees.

What value of house will be shown in books of Accounts ?
Will it be 55 Lacs or 53.5 Lacs

Thanks & Regards
Replies (6)
Quick Summary
This discussion explores how stamp duty and registration fees paid during a house purchase affect the cost of the asset for income tax purposes. It delves into the question of whether these expenses, eligible for deduction under Section 80C, should be added to the house's cost in the books of accounts. Opinions vary on whether to claim the 80C deduction and reduce the asset's cost, or to include the full amount in the cost and forgo the 80C benefit to potentially reduce capital gains tax upon sale.

In my opinion, it should be 53.5 lakhs, let's wait for experts opinion
As per my opinion.,

it's 55lakhs...
80C deduction can't be less in that value. 80c deduction is given in the incomes value...
I think, total amount of stamp duty and Reg. charges i.e. Rs. 5 lakhs should be added to the cost of asset.
Then take exemption of it under 80C from Total Income.
Cost Should be 55 Lakhs. 80C deduction only for your Tax Benefit Calculation.. If you Show Net then while sale of such asset you should Pay More Capital Gains as well.

In my opinion , 

YOU CAN NOT take benefit of Registration Fees, Stamp Duty under the both Sec. 80C and Sec 55 (Capital Gains) 

Either claim deduction of Rs. 5 lacs u/s 80 C and then COA for the purpose of Sec 55 is Rs. 50 lacs 

Otherwise , NO deduction u/s 80C and claim COA is Rs. 55 lacs 

But in the Books of accounts you can show COA as 55 Lacs .

Bit for the purpose of tax , it may be as explained above . 

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