Exemption of Stamp Duty for under construction flat

POSTED BY Keyur Jinwala ON September 6, 2013 11:08 am ONE COMMENT

Hi I have a query regarding tax exemption due to Stamp Duty paid on purchase of an under construction flat (apartment)

I have purchased an apartment which is under construction and is to be possessed in Dec 2014 (FY 2014-2015). I’ve done the agreeement with Developers and paid the Stamp Duty (6% of the agreement value) in month of Aug 2013 (FY 2013-2014)

Can I claim the Stamp duty and registration fees for exemption? As per website of Income Tax India, nowhere it mentions the mandate to possess the flat to claim Stamp Duty and Registration fees for tax exemption

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=05c5897a-4e8f-4723-b594-17964e3bc153&rdb=sec&yr=303d6389-2d18-4432-bdbf-b74822b1a6df&sec=80c&sch=&title=Taxmann – Direct Tax Laws

I submitted the relavant docs to my employer however they say possession of the flat is required to claim such deductions

Here is the reply that I got –


Kindly note that it is clearly mentioned as ” stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee,” and you can’t term the property as house property till it is completed. So indirectly you can’t claim the benefit till you have possession

Can you help me out here?

One reply on this article “Exemption of Stamp Duty for under construction flat”

  1. Dear Keyur, your employer has wrongly interpreted the income tax act. In case the people there are not co-operating with you. Your only option is to claim the benefit at the time of Income Tax return filing next year & get refund of your excess tax paid.



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