Tax Benefit On Stamp Duty & Registration Charges Of Property

If you have purchased or constructed a house property during the year you not only get a deduction for interest paid on the home loan but also you get a deduction of up to Rs. 1,50,000 for principal repayment including the stamp duty and registration charges and other expenses that are directly related to the transfer under section 80C. In this article, we will learn in detail about the deductions available for stamp duty and registration charges of property.

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 2024 and pay its stamp duty and registration charge, you can claim these expenses under section 80C only in FY 2024-25. 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 that a company's shareholder or co-operative society member pays to become a shareholder or member are included.
• 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 a Deduction in the 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.