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Stamp duty and registration fee deduction for income tax

Mkumar (TA) (50 Points)

18 April 2013

Hi all,

I have bought an old house (in Bhartpur) and paid the stamp duty and registration fee of (75000/-) on 10 Apr 2013. It's 2 story house. however I am currently residing in different city (Panchkula) and staying on rent and showing HRA under 80 C. I have paid the stamp duty and registration fee through cash and not taken any sort of loan for purchasing the house.

Please let me know whether I can show stamp duty and registration fee of (75000/-) under section 80C in this current financial year(2013-2014)?

Thanks & Regards

Manoj Kumar

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11 Replies

PMA Nooruddin (M.Com, Finance Manager) (422 Points)
Replied 18 April 2013

Yes You can

1 Like

AGNIHOTRAM RAM NARAYANA (JR EXECUTIVE) (119 Points)
Replied 18 April 2013

dear manoj,

you are not eligible to show the amount under section 80c as you have not availed any loan from any bank. it is meant for repayment of housing loan principle for the loans availed from banks.

regards,

ram narayana agnihotram

1 Like

CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
Replied 18 April 2013

yes you can get full 75000 as deduction u/s 80C of Income Tax...

1 Like

Gaurav (CA) (50 Points)
Replied 18 April 2013

Dedution of Stamp Duty, Registatration Fee & other Exp for the purpose of trnafer of H P iss allowable but shall not include any payment towards or by way of—

(A) the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder or member; or

(B) the cost of any addition or alteration to, or renovation or repair of, the house property which is carried out after the issue of the completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or

Above mention para is from act itself. As it is mention that, no deduction is allowable after issue of completion certificate, NO DEDUCTION WILL BE ALLOWED UNDER SECTION 80C as per My opinion.

shashank rajvanshi (ca) (37 Points)
Replied 18 April 2013

u can claim ded u/s 80c as there is a provision writtn over there that any amount paid for the stamp duty and registration fees at the time of acquiring ownership is allowed under 80c as a deduction/..

Neha sharma (-) (1257 Points)
Replied 18 April 2013

Dear Gaurav Sir

Could you please explain your viewpoint in detail that why should deduction for payment of stamp duty not be allowed to be deducted u/s 80C ?

1 Like

Sathish M (Management Accountant) (40581 Points)
Replied 19 April 2013

Yes, the amount which is paid as stamp duty for acquiring the house, alongwith registration fees can be claimed as deduction under section 80C in the year of purchase of the house.

2 Like

Gaurav (CA) (50 Points)
Replied 19 April 2013

Dear Neha,

As Per Sec 80C, stamp duty & registration fees are allowavable deduction.

But, there are 3 condiotions in the act, where it is mention that, any alteration cost addition cost renoativation cost AFTER issue of completion certificate are not allowavable under this sec.

If you read it as, any cost or fees after issue of completion certificate is not allowed as deduction.

I made this opinin according to the opinion of expert. you can follow the link /experts/sec-80c-deduction-of-stamp-duty-and-registration-charges-922600.asp#.UXD1PbX8UQM

1 Like

shashank rajvanshi (ca) (37 Points)
Replied 20 April 2013

BUT GAURAV SIR HOW CAN U SAY THAT FEES PAID FOR ACQUISTATION OF ASSET LEAD TO ALTERATION IN ASSET AFTER ISSUE OF COMPLETION CERTIFICATE.

1 Like

Gaurav (CA) (50 Points)
Replied 20 April 2013

Dear Shashank Sir,

I read act as any transaction after issue of certification is not allowable exp (including stamp duty or any other). Because if you observe the act over all, it encourage to buy new house. (Like Sec 54 of caiptal gain). Further, I concreat my opionion because of expert opinion & some blogs on same as per above mention link.

However, It is not mention any where in act that, deduction on old house is not allowable. So you can take it other way too.

Its all about how you interpreat it and I just give my opinion with support of expert and some blogs.

Thank you.

Geeta (Accountant) (23 Points)
Replied 17 March 2016

YOU CAN NOT AVAIL BENEFIT UNDER SECTION 80 C AS YOU BOUGHT OLD HOUSE AND PAID STAMP DUTY ON IT.

As Per Act"No expenses can be claimed if assessee has already occupied the house property either wholly or partially. The house property should be new and had not been in use for the assessee’s own residence."