House registration and Tax rebate in section 80C

POSTED BY JayaprakashReddy ON November 29, 2010 11:29 pm COMMENTS (13)

Hi Friends,

My friend recently bought a house he will get the possession after an year. He was told by somebody that his house registration fee paid to government can be shown in the 1 lac slab of section 80C. Is this true? I didn’t find any information related to this in Income tax website? Does anybody has any idea?

13 replies on this article “House registration and Tax rebate in section 80C”

  1. MKHariharan says:

    Hi,
    Can someone clarify whether stamp duty and registration charges paid for purchase of second hand flat also eligible under section 80C

    Hariharan

  2. [email protected] says:

    Hi Manish,

    My name is Rahul. and I am new to this forum.
    I have purchase a property in Jan2015 and did its registration in Feb 2015.
    So where should I show its registration cost which is 1.39 Lakhs incl. all?
    Do i show it in ITR of this year or in the Investment declaration of next year?
    FYI, I’am yet to get possession of flat…

    Your timely response will be greatly appreciated.

    Thanks ,
    Rahul.

  3. Harsh says:

    So basically for a year when you do the registration by paying more than a lakh, there is no need to look for additional investments under 80C?

    1. Dear Harsh, Yes is the answer.

      Thanks

      Ashal

  4. H.S.V.R.SUDARSAN SARMA says:

    I have bought a vacant site property in May 2011. The stamp duty is 29160/- and other regisration costs are 2070/-. I have not taken any loan for buying this property. I claim this under section 80C or any other applicable sections.:)

    1. Can i claim the stamp duty and registration charges under Section 80C? Will it still be eligible for deduction under Section 80C or any other applicable section?

  5. Harsha says:

    Dear Sir,

    I booked a flat for around 19 lakhs, in last year April (2010). I had applied and got home loan sanctioned from SBI. I chose to start the EMIs right away. The EMIs(full EMI, not pre-EMI) started in June 2010. Till now I have paid around 8 full EMIs. Total of around Rs 20,000 as principal and Rs.50,000 as interest till now.
    The construction was supposed to be completed by Jan, 2011. But because of some labour problems for builder, he’s now telling that he’ll give in March 2011. And FYI, we have done agreement for sale in April 2010 and I had paid around 18,800 as registration & stamp duty of Agreement.

    Now I have some questions regarding tax benefits:
    1. As the flat is still under construction, can I get tax benefits for pricipal payment(20K) and registration of agreement for sale (18.8K) under section 80C? I know its not possible in case of interest payment unless I do sale deed, registration and get occupation certificate of flat from builder.
    2. He’s telling that he’ll give it in March 2011. What if it gets delayed and doesn’t happen in this financial year (2010-11)? Can I anticipate and give a probable date for income tax computation in my company, as they are asking for IT proofs for form-16 preparation…
    3. Please confirm whether I can get tax benefits for principal and registration charges (together around 39K)…
    4. If I do sale deed and registration in this financial year and if it doesn’t get reflected in form-16, can I later declare the interest portion in IT returns? is it possible?

    FYI, I’am yet to get possession of flat…

    Your timely response will be greatly appreciated.

    Thanks,
    Harsha

  6. satheesh says:

    Hi friends, Sorry for asking a question in the old thread…

    I have bought a house property in May 2010 jointly with my brother. The stamp duty is 160000 and other regisration costs are 15000. We have not taken any loan for buying this property. My brother is happy for me to claim this under section 80C or any other applicable sections.:) He is ok to sign the declaration that he will not claim it for tax deduction. My queries are:

    1. Can i claim the stamp duty and registration charges under Section 80C? We have NOT taken any house loan for this. Will it still be eligible for deduction under Section 80C or any other applicable section?

    2. If the answer to the 1st question is yes, If i don’t wish to claim this year, Can i claim the stamp duty and registration charges in the next financial year?

    Thanks

  7. jitendra solanki says:

    Prabeesh,

    I think manish has answered your query but yes you should have done some research for your loan and the exemptions you will avail.

  8. prabeesh says:

    @manish
    My bad i did not research much on this. I recently purchased the land and planning to go ahead with construction with a housing loan,,doing the research right away

  9. prabeesh says:

    @jitendra solanki

    I have recently purchased a land for house construction,for which i have applied for home loan. Can i claim the stamp charges of it in 80C?

    1. Prabeesh

      Man .. Dont tell me you didnt knew it 🙂 .

      Yes , Stamp duty and registration charges are part of 80C , and you can claim it only in the same financial year of buying the house , not later.

      also you should be in possession of the house to claim it

      Manish

      1. I am wondering how can you not know this , If you are buying real-estate , you were suppose to make sure you research it in detail and also hire some knowledgable CA or any advisor as its matter or millions 🙂 . Not expected !

        Manish

  10. jitendra solanki says:

    Hi Jaya,

    yes, You can claim that.

    Sec 80 C also pertains to the payment of Stamp Duty, registration fee and other expenses for purpose of transfer of house property.

    This is what Income tax act says for section 80C:

    The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered. Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or 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 by competent authority, or after the occupation of the house by the assessee or after it has been let out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Income-tax Act will also not be included in payments towards the cost of purchase or construction of a house property.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today