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Tax Benefit On Stamp Duty & Registration Charges Of Property

Updated on: Apr 18th, 2024


3 min read

If you have purchased or constructed a house property you might want to look into the provisions of stamp duty exemption. Stamp duty and registration charges and other expenses which are directly related to the transfer are allowed as a deduction under Section 80C. The maximum deduction amount allowed under this section is capped at Rs.1,50,000.

When Can You 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 2023 and pay its stamp duty and registration charge, you can claim these expenses under section 80C only in FY 2023-24. Both an individual and a HUF can claim this deduction in their income tax return. However, it's worth noting that this deduction can be claimed only if you have opted for the old tax regime. If you have opted for a new tax regime, then you are not eligible to claim this deduction.

What Expenses Cannot Be Claimed as Deduction?

  • Admission fees, cost of share and the initial deposit which a company’s shareholder or co-operative society’s member has to pay to become a shareholder or member.
  • The cost of addition, alteration, or renovation that is done after getting a certificate of completion, or after the house has been occupied by the buyer or let out.

Joint Owners

If 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.

Where Can I Claim Deduction in ITR Form?

In Schedule VI-A, under Section 80C, you can claim a deduction on Stamp duty and registration charges paid at the time of purchase of house property. This is available in all ITR Forms

80c stamp duty registration

Frequently Asked Questions

I have opted for New tax regime. Can I claim deduction on Stamp duty paid ?

No, This deduction is applicable only if you have opted for the old tax regime. Since you have chosen new tax regime you are not eligible to claim any deduction on the same.

In which year can I claim deduction on registration charges and stamp duty on property?

You can claim deduction in the year of actual payment of such an amount. i.e the year in which you have actually registered your property and paid such amount you will be able to claim such amount

Is TDS applicable on stamp duty and registration charges?

Yes, if the buyer buys an immovable property which costs more than Rs 50 lakhs, he has to deduct TDS when he pays the seller.

Can I show stamp duty and registration fees in 80C?

Yes, you can show the stamp duty and registration fees under deduction section 80C.


Quick Summary

Stamp duty and registration charges are allowed as a deduction under Section 80C for house property purchases. Deduction can be claimed in the year of actual payment and only in the old tax regime. Expenses like admission fees, share cost, or renovations post-occupancy are not eligible. Joint owners can claim deductions based on their share. Deduction can be claimed in Schedule VI-A of all ITR Forms.

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