Stamp duty & registration fee

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Jessie Joshua M

Student

23 Points Posted on 24 September 2012

Stamp Duty and registration fee paid for the purchase of new property can be claimed as a deduction under sec80C.

similarly while computing capital gains on sale of the property, stamp duty and registrating fee paid for acquiring the property can be added to the 'cost of acquisition' of the property.

my question now is whether stamp duty & registration fee paid can be claimed both as a 'DEDUCTION u/s 80C' AND as an addition to the COST OF ACQUISITION while computing CAPITAL GAINS on sale of the property.

can the stamp duty & registration fee for the same property be claimed twice??

Replies (4)

Giridhar S Karandikar

Team Lead

5675 Points Posted on 24 September 2012

Stamp duty & Regt fees forms part of the Cost of Acquisition, hence when we sell the property the indexed cost of acquisition inclusive of duty & fees is claimed as deduction.

Where people take the property on loan, so in this case they are repaying the cost of property to the lender. In this case also we are claiming the deduction of the of the loan taken by way of princple repayment u/s 80C, but while indexing teh cost of acquisition the indexed cost is claimed as deduction for CG.

so deduction can be claimed twice.

Nikesh

Prop.

22 Points Posted on 25 July 2016

Can we claim interest paid to acquire the property as cost of acquisition ?

Tej Bakshi

student

22 Points Posted on 10 May 2017

yes u can.

Vivek Deshpande

22 Points Posted on 22 July 2018

If the buyer has already claimed the deduction on the hom loan interest then it can not be accounted under the 'Cost of acquistion' .. you can refer below ruling

https://home.kpmg.com/content/dam/kpmg/pdf/2016/06/tnf-india3-june-7-2016.pdf