Stamp Duty and Registration Charges Deduction u/s 80C

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.

60 Responses to “Stamp Duty and Registration Charges Deduction u/s 80C”
  1. SAGAR SAWLANI

    HI I AM SAGAR , IHAVE RECENTLY PURCHASE PROPERTY. PAID STAMP DUTY OF Rs 288000/- on 20 march 2014 My wife is main applicant and i am co applicant. Can i take rebate in ITR for stamp duty in this year as wife income not fall in income tax slab.

  2. HPP

    Can the deduction be claimed in respect of stamp duty paid for purchase of flat which is sold by the owner who stayed there with his family for more than 10 years?

  3. Krishna Mohan Narla

    Sir,
    I have paid stamp duty and registered new property on 25th Feb, 2013. Will I be able to get deduction under 80C in the current FY i.e. 2013-14? As 1st point says, it should be paid in the previous year.

    • thesanyamjain

      Unfortunately you cannot claim it in FY 2013-14, you should have claimed it in AY 2013-14.

  4. Amit

    Hi , I have purchased house and paid the stamp duty of Rs 230,000 /- in June 2012. Am i eligible to claim it in 2013-14. I have already shown the LIC premium and PF in 80C which is Rs 76,000/-. I understand max limit in 80C is 100,000/- only. Pls suggest how to claim the stamp duty charges while filing the return.

    • thesanyamjain

      Yes you can claim stamp duty and registration charges paid upto Rs.24000 since the limit of 80C is 1 lakh and you have already utilized Rs.76000 from it.

  5. sarla

    RESPECTED SIR
    I HAVE PAID REGISRY CHARGE LAST YEAR IN JUNE 2012 BUT NO LOAN FROM ANY BANK OR INSTITUTION IF I CAN GET TAX REBATE IN 80 C OR NOT

    • thesanyamjain

      Yes you can claim deduction of the amount paid as registry charges under section 80C.

  6. Balu

    Hi Sanyam,

    Thanks for the wonderful article.

    If me and my wife have paid towards the stamp duty and registration in Feb 2013 which totally amounts to 1,76,000. I have paid 90,000 and my wife has paid 86,000. The possession is in the month August 2013.

    My Query is as below:

    1) Can we both came 90,000 and 86,000 respectively in the AY 13-14? Or should the total we both can claim is 1,00,000

    2) Can I claim around 1,00,000 even though I have paid from my account only 90,000?

    • thesanyamjain

      1.You both can claim deduction of the respective amount you paid only and only if both of you are co-owner.

      2.The deduction is available only upto the amount of stamp duty paid.

  7. Nishant

    Hi,

    I have paid stamp duty and registration at the time of agreement for sale in March’12 but Sale deed happened in Apr’13. Will i be eligible for tax deductions on stamp duty and reg fee in this year filing?

    • thesanyamjain

      You were eligible to claim deduction of stamp duty paid in the assessment year 2012-13 since stamp duty deduction available in the year of payment only.

  8. Sandeep

    Sir,

    I made a new purchase of house in June 2012 and paid for Stamp Duty and registration charges via cash. Can i still claim for deductions. If I am eligible for the same do i have to attach documents as a proof.

    • thesanyamjain

      Yes you can claim while filing ITR for assessment year 2013-14 for which last date is 3ast July, 2013.

      And there is no need of any proof of payment of stamp duty and registration charges required to be attached with ITR but you should keep it, if in case asked by AO>

  9. Kazi Ahsan Habib

    I did not understand point no. 5.

    • thesanyamjain

      It means that stamp duty charges u/s 80C is available only for new house property, if any assess already occupied the house property either wholly or partly then s/he cannot claim stamp duty charges.

  10. lucky

    Hi, What benefit one may claim of the Service Tax paid on the purchase of flat apart from stamp and registration expenses.

    • thesanyamjain

      Unfortunately there would be no benefit on the service tax paid on purchase of flat.

  11. Ganesh Babu

    WAS THIS DEDUCTION AVAILABLE ONLY IF ASSESSE NOT OCCUPIED AS PER 5TH CONDITION,
    MEANS IF THE ASSESSE BOUGHT AND OCCUPIED IN THE SAME YEAR HE CANNOT CLAIM 80 C CLARIFY IT ASAP

    • thesanyamjain

      5th talks about the part of house not part of year.. If the assessee posses only a part of the house then stamp duty can not be deductible…

  12. RajuBabu Gurram

    Hi,
    It is nice article. I have done my under construction flat registration on Oct 2012. The possession is in July 2013. I didn’t know that the Stamp Duty and Registration charges can be shown under 80C before and tell to my employer.
    Now Can I show these charges when I file ITR in AY2013-14? If so, how to show them?

    • thesanyamjain

      If you have paid Stamp duty charges and Registration Charges in year ending 31-3-2012 then you can very well claim under 80C deductions in you ITR

      • RajuBabu Gurram

        Thanks for the reply. Little confused with your comment “in year ending 31-3-2012″. In my case i.e I paid in oct 2012, can I show them at the time of ITR this year?

        • thesanyamjain

          Yes You can show it in your ITR for Assessment year 2013-14

  13. Khushboo Patel

    Good Afternoon Sir,
    An Assessee has purchased house property through loan and has paid stamp duty, then immediately has given on rent,he is entitle for deduction u/s 24 for standard deduction as well as for interest on loan.Still he’ll be benefited for stamp duty deduction u/s 80c?

    • thesanyamjain

      Yes you are eligible to claim deduction under section 80C

  14. monty

    Hi for current F.Y. 2012-13 I got sec 80C tax deduction of Rs.100000 through my LIC premium. Now in current F.Y.2012-13 paid stamp duty can I use in next F.Y.2013-14 for tax deduction?

    • thesanyamjain

      There is no provision of carry forward of stamp duty paid i.e. if you have paid stamp duty then you have to claim in that year only else it will lapse.

      • monty

        Thanks for reply

  15. Tushar Kapse

    Dear sir, I Purchased a non agricultural land to build my home. While purchasing this land I paid stamp duty on it, So can I apply it for tax redemption.

    • thesanyamjain

      yes you can claim stamp duty charges in the year of payment like if you have paid charges in FY 2012-13, you can claim deduction in AY 2013-14 u/s 80C.

  16. Pushkar

    HI, If we are purchasing a resale flat and agreement is made before 31 March 2013 then can the same be deducted under 80C for year FY 2013-2014?

    • thesanyamjain

      80C deduction is allowed for Stamp Duty charges on purchase or construction of new house.

      Now New House can be :

      1. You are buying house for the first time irrespective of anyone resided/stayed in that house earlier,

      2, You are buying house which is newly constructed means no one has ever resided/stayed in that house.

      If your purchased resale flat fits in anyone of the above than you can claim deduction in FY 2013-14 i.e. AY 2014-15.

      • Pushkar

        Hi Thanks for reply. Yes it fits on one of the criteria but I didn’t understood the part “you can claim deduction in FY 2013-14 i.e. AY 2014-15.” So and agreement is made before 31 March 2013 and stamp duty is paid then since this years 1 LAKH limit is already exhausted , can it be claimed in next year?

        And if its a home on joint name then can both the individual claim it in proportion?

        • thesanyamjain

          you can claim only in the year you paid stamp duty, there is no provision of carry forward.

          Stamp duty deduction can be claimed by the assessee who has actually paid the amount, joint name or joint loan does not matter.

          • Pushkar

            Thanks :)

  17. Jai Shah

    Can a stamp duty deduction be claimed on a house under construction and when there is a difference in the possession date of the house and the payment of the stamp duty? eg. my possession date is 2015 and i paid the stamp duty in January 2013

    • thesanyamjain

      yes Stamp duty can be claimed for house under construction. For claiming deduction u/s 80C date of possession is irrelevant, only the date of payment is considered, if stamp duty is paid in the previous year then deduction can be claimed.

      In your case you are eligible to claim deduction in AY 213-14.

  18. supriya

    Hi there!I an NRI , planning to buy a property wih land &residential house built in.this will be on Mar2013. I have few queries if u can advice me. The property is in west bengal & it cost 35lacs. So what would be the payble stamp duty (I have calculated 245000/-). Its in municipality area. Is there any additional charges for registration involved ? & can I claim the deduction amount next year ? How much it would be. The property would be on my name only. Appreciate your kind response with the queries, as I’m on a verge of buying the property . Regds Supriya

    • thesanyamjain

      Stamp duty is based on circle rate which varies from 7 to 10 percent. At present circle rate of West-Bengal is 7% of Cost which amounts to stamp duty of Rs. 2,45,000.

      In most states the entire legal charges in terms of stamp duty and
      registration fees add up about 7 per cent to 10 per cent of the property
      cost. So there would be no additional charges.

      Regarding Deduction, you are eligible to get deduction of the amount of stamp duty and registration charges paid in the year of payment u/s 80C i.e. if you paid in FY 2013-14 then the deduction could be claimed inAY 2013-14 subject to maximum of Rs. 1,00,000.

      Regards

      • supriya

        Thank you very much for your prompt & useful response. Just to clarify my understanding , so I will be eligable to claim the deduction on April or May 2014 .. right !! One more thing, as I’m buying this through Baroda bank loan is there any other provision for investment benefit ? What if I do a further investment of rs 20000/- on DIFC bond ,should I will get further benefit ? Please advice . Regds supriya.

        • thesanyamjain

          Deduction is claimed yearly not monthly, in your case the deduction is available for the Assessment Year 2013-14 i.e. you can claim deduction while filing income tax return of the year 2012-13 which is to be filed by 31st July, 2013.

          Investments available for NRIs

          NRIs can make investment on the following instruments such as EPF (Employee’s provident fund), VPF (Voluntary provident fund), ULIPs (Unit-linked insurance plans), ELSS (Equity linked savings scheme), 5-year tax-saving fixed deposits (FDs) of banks, Mutual funds pension plans , NABARAD (National Bank for Agriculture and Rural Development) Rural Bonds and life insurance premium.

          Investments not available for NRIs

          PPF (Public Provident Fund), NSC (National Savings Certificate), SCSS (Senior citizens savings account) and POTD (Post office time deposits) are not available for NRIs.

          However, if you had already opened any of these accounts when you were a Resident Indian, you can continue to service the account(s) till maturity.

          So you are not eligible to get deduction for the investment in DIFC bonds.

  19. Sachin

    So stamp duty on buying a resale flat cannot be claimed under 80C?

    • thesanyamjain

      80C deduction is allowed for Stamp Duty charges on purchase or construction of new house.

      Now New House can be :

      1. You are buying house for the first time irrespective of anyone resided/stayed in that house earlier,

      2, You are buying house which is newly constructed means no one has ever resided/stayed in that house.

  20. B Majumder

    I have purchase a vacant plot in my name & paid Stamp duty of Rs.55,000/-. I am planning to build house over there. I have taken Personal loan to buy that property.. Now can i claim the total stamp duty charges as Claim of Income tax exemtion under section 80C. Please advice me

    • thesanyamjain

      yes you can claim stamp duty charges in the year of payment like if you have paid charges in FY 2012-13, you can claim deduction in AY 2013-14 u/s 80C.

  21. Vishwanath G

    Hi Sanyam. I had purchased a new residential flat under my name in December 2010.
    I had paid Registration+ stamp duty charges close to Rs 100,000.
    I could not claim it in the 2011-2012 fiscal year.
    Is there any way i can claim the same now?
    Also, Can the yearly paid property tax also eligible for tax deduction?
    If so under what conditions? I am currently occupying the house that i bought.
    Thanks in advance.

    • thesanyamjain

      Sorry but you can not claim stamp duty paid in December 2010 now. It was available for deduction in AY 2011-12 only.

      Property tax paid yearly is only deductible if house is rented. No deduction of property tax is available for self occupied house.

      Regards

  22. Amit Pai

    If i pay Stamp Duty and execute Sale Deed in March 2013. And if registration is done on April 2013. Can I claim Income Tax exemption for stamp duty for FY 2013 and can i claim registration alone in FY 14. Also Can i Spread the stamp duty amount by showing part amount in FY 13 and Part amount in FY 14? Would be thankful to you if replied urgently

    • thesanyamjain

      The key points to claim deduction is the amount should be paid in the previous year and the house should be in the name of assessee.

      1. Since you satisfy both the conditions, you can claim deduction of stamp duty and registration paid in different years

      2.About spreading, I think dividing stamp duty or registration charges in different years is not allowed under income tax for deduction.

      So you can avail deduction of stamp duty or registration charges paid only for one financial year in which they are actually paid.

  23. Sharan

    We purchased a house in june 2012 & paid stamp duty charges close to 4L. Can both of us claim deductions u/s 80C for stamp duty & registrations charges for this financial yr. The house is in joint holding, but the home loan is being paid by my husband only.

    • thesanyamjain

      Yes you both can claim deduction of the amount of stamp duty and reg charges paid.

  24. Saurabh

    I am planning to buy a resale flat (owner got possession in 2012) and i will do agreement to sale next month (March 2013) & sale deed (Apr 2013). The flat was unoccupied so far. Am i eligible for stamp duty / registry 80 C duductions for this financial year?

    • thesanyamjain

      You will not be eligible because for claiming deduction the property should be in the name of the assessee but in your case the sale deed will be executed in the next April 2013.

      It is advisable to either to wait for a month to pay stamp duty or execute sale deed in march 2013.

  25. Harshal

    I have paid stamp duty of Rs 1,60,000 in Dec-2012, house is still under construction. I have not yet ot Possession of this house.
    Can I claim Stamp duty amount as income tax rebate under section 80 C for A.Y. 2013-24?

    • thesanyamjain

      The key thing matters while claiming stamp duty deduction is, amount should be paid in previous year by assessee and the house should be in the name of assessee.

      If registration deed has been executed in your name then you can claim the deduction. Possession of house does not matter while claiming this deduction.

  26. Suresh

    I did purchase a house on NOV-2012 and paid a Stamp duty of Rs 80000. Can I claim this amount as income tax rebate under section 80 C provided :

    1. I am still living in a rented house not in newly purchased house.
    2. Purchased house is vacant and I will start living there after 4-5 months.
    3. Newly purchased house is fully owned by me.

    • thesanyamjain

      You can claim the full amount of Rs. 80,000 in the A.Y 2013-14. Residing in it does not matter, the things matter are:

      1. Should be a New house
      2. Stamp duty shall be paid in the previous year.

      Regards

  27. DIVYA HANDA

    All of ur articles r truly helpful.

    • thesanyamjain

      I m glad u like them..

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