ATM :: Stamp Duty and Registration Charges Deduction u/s 80C

by Sanyam Jain | posted: January 13, 2013 0 comment
As per Section 80C, one can claim Stamp Duty and Registration Charges of House Property upto Rs. 1 Lakh. The Section 80C read as follows:
80C. 13(1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2) (xviii), as does not exceed one lakh rupees.
(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property” (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—
(a) any installment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or
(b) any installment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or
(c) repayment of the amount borrowed by the assessee from Banks and other financial institutions.
(d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee,
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;
But to claim deduction in respect of Stamp Duty and Registration Charges few Conditions have to be fulfilled:
1. The amount of such stamp duty or the registration charge for which the deduction is sought should be paid in the previous year. Expense of earlier years in respect of stamp duty or any sort of registration charge shall not be eligible for deduction under section 80c.
2.  Further the house should be in the name of the assessee claiming deduction.
3. The assessee himself must pay the amount. Exemption under section 80c shall not be available to any other assessee within in the same family, it will be allowed to the person making the payment.
4. such expense deduction  under Section 80 C will only be available for deduction in respect of a new house property.
5. No deduction available if the property is occupied by the assessee either wholly or partially.

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