How to consider Home registration and stampduty in Income tax return?Can I directly deduct from tax’le income?



Is it possible to deduct the same directly from the taxable income becasue it is going to government, similar to proffesional tax.
My question is related to only stamp duty and registration. Not for home loan interest and principal.

How to consider Home registration and stampduty in Income tax return?Can I directly deduct from tax’le income?
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7 Replies to “How to consider Home registration and stampduty in Income tax return?Can I directly deduct from tax’le income?”



  1. Hi Dear

    No it adds up to the cost of property.
    When you sell the property you can include it in the cost for calculating the Capital gain



  2. Stamp duty and registration charges paid can be deducted from taxable income of the year in which they are incurred provided the limit of Rs. 1,00,000 (Section 80C Savings) is not reached.

    e.g. PF and PPF contribution Rs. 79,000
    stamp duty & Registration Rs. 35,000

    You will get benefit for only Rs. 21,000 of the stamp duty charges paid and rest will be ignored. You cannot adjust this in the next year’s income.


  3. Only ans given by Dragon is correct.

    Registration Fee and Stamp Duty only add to the cost of acquisition. They do not qualify for exemption u/s 80C.
    When you sell the house these get deducted from your sale price, bringing your capital gains down.

    Computation of Long-term Capital Gain :

    1)Take the full value of consideration (full sale price without any deductions),

    2)Deduct
    •Expenses incurred for the transfer,
    •Indexed cost of acquisition, and
    •Indexed cost of improvement.

    3)Deduct exemptions under sections 54, 54B, 54D, 54EC, 54ED, 54F and 54G if any.

    HMT


  4. I do not think that registration and stamp duty gives any benefit under 80C. Related to home loan only principal goes under 80C and nor registration.

    Thanks





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