Income Tax Exemption on Stamp Duty of Land Purchase

POSTED BY Vinu ON July 22, 2011 10:57 am COMMENTS (8)

Hello,

I have Purchased a Land which is allotted from Urban Development Authority for Residential purpose on Lease cum Sale agreement for 10 years (have to build the house within 10 years as per the agreement).

I have Paid the Stamp Duty and Registration Fee of 56,000.

Please clarify whether this Stamp Duty & Registration ammount can be exempted from my Income Tax?

I am a salaried employee in a private company.

Thanks & Regards,

Vinay

8 replies on this article “Income Tax Exemption on Stamp Duty of Land Purchase”

  1. vineet says:

    i have purchased a plot on my mother’s name. can i get tax benefits on stamp duty and registration?

    1. No, unless the plot is on the same name

  2. ramesh killani says:

    Sir ,I have purchased a plot in layout vencher and paid stamp duty and registration fee of 40,000 rupees .May I get the tax exemption under 80c!!?

    1. Yes, for the stamp duty you will get the benefits in the same year of payment !

  3. Krishna says:

    I have purchased a agriculture land and paid stamp duty & registration fee of 50000. May I get the tax exemption under 80C?

    1. Yes, you can get it in the same year when you paid it

  4. jitendra solanki says:

    This is what law says:

    As per Section 80C(2)(xviii)(d) of the Income-tax Act, deduction of stamp duty, registration fee and other expenses for the purpose of transfer of house property is allowed only if the same is for the purpose of purchase or construction of a residential house. The income from such property is chargeable to tax under the head “income from house property”.

    Since your stamp duty is for purchase of land and not for house, it i snot exempted.

  5. Vinayak

    For residential purchase , the stamp duty ?& registration fees can be deducted as 80C benefit in the year of payment, but in this case I am not sure if it would apply as its just a land

    Manish

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