Purchasing a house is certainly an expensive affair. The outgo sometimes empties our bank accounts. We wish to save tax however, there is little money to spare to make tax saving investments.
If you have purchased a house property or if you have constructed a house property – Stamp Duty & Registration Charges and other expenses which are directly related to the transfer are allowed as a deduction under section 80C.
This has the twin benefit – you are required to pay money towards stamp duty and registration charges of your house and the same amount can be then claimed as a deduction under section 80C. However, the maximum amount which is allowed as a deduction under section 80C is capped at Rs 1,50,000.
When to claim deduction – This deduction can only be claimed in the year the actual payment is made towards these expenses. If you buy the property on 30th August 2014 and pay its stamp duty and registration charge – you can claim these expenses under section 80C only in the financial year 2014-15. Both an individual and a HUF can claim this deduction in their income tax return.
Joint Owners – In case you have purchased the property jointly –the co-owners can claim these expenses in their respective income tax returns based on their share in the property. However, the maximum limit of Rs 1,50,000 available under section 80C shall apply.
Tax Benefit on Stamp Duty & Registration Charges of a Property
Published On - December 10, 2014
