Stamp Duty exemption in 80 C for under construction flat

POSTED BY Rohit Singh ON January 1, 2014 12:11 pm COMMENTS (12)

Hi All,

I have paid registration and stamp duty fees for a under constructed flat this december 2013. The flat is registered in my name and fathers name.

I will get possession in 2015.

there are two questions

1. can i claim stamp duty deduction in 80C for under constructed flat

2. if yes can my father(he is also working) also claim stamp duty deduction in 80 c for the same flat…….

 

12 replies on this article “Stamp Duty exemption in 80 C for under construction flat”

  1. ashalanshu says:

    Dear Lucky, the answer for your query is yes.

    Thanks

    Ashal

  2. luckyr18 says:

    if home construction completed in march 2014, can we claim the principal & Interest ( from april 2013 to march 2014 ) and stampduty, registration etc or not.

  3. tegautham says:

    Principal repayment, stamp duty and registration charges cannot be considered for tax benefit under Section 80C as long as the property is under construction. For consideration under Section 80C, the property should be capable of generating income (real or notional) which is chargeable under the head “Income from house property.” Section 22 and 23 of the Income Tax Act present the introduction to income from house property and determination of the annual value of a house property.

    When a house property is under construction, there is no likelihood of income, and hence under Section 80C there is no provision for tax rebate on account of principal repayment (other charges such as stamp duty). Only in the year in which the construction is completed can the principal repayment (and stamp duty etc.) be considered for tax benefit.

    https://www.hinote.in/house-property-construction-section-80c-benefit

  4. ashalanshu says:

    Dear Raja, I’ll go with the wording of section 80C in official income tax site.

    Thanks

    Ashal

  5. Raja says:

    Please refer following link,
    http://www.charteredclub.com/tax-benefit-on-home-loan/

    No deduction is possible for home loan (Section 80c or 24) until construction is completed and completion certificate is obtained (possession obtained). This is as per rules and I am sure about it as even in our company the finance department goes by this rule. I am sure it is mentioned somewhere in the income tax website too, i’m not sure where.

  6. ashalanshu says:

    Dear Roja, if you can not trust the official site of Income Tax of India, well what should I do.

    Dear Rohit, as per the info available on official site, you can claim. Still if you want to double check it, please pop the same question in your nearby Income Tax office or your CA.

    Thanks

    Ashal

  7. Raja says:

    Rohit,
    As far as I know, you cannot claim any exemption until you get possession of the flat

  8. Raja says:

    Check Manish’s reply at the below link. I have read something similar in one of the leading CA’s book on income tax planning.

    https://www.jagoinvestor.com/forum/house-registration-and-tax-rebate-in-section-80c

    income tax website unfortunately does not give all the riders for the exemption.

    1. Rohit Singh says:

      hi,

      The question still remains can i avail 80c benefit on the under construction house.
      please respond…

  9. ashalanshu says:

    Dear Raja, please check the official link of section 80C below and show me the ‘wording’ that possession of property is required to claim stamp duty benefit.

    law.incometaxindia. gov. in/dittaxmann/incometaxacts/2008itact/section80c.htm

    Thanks

    Ashal

  10. Raja says:

    Stamp duty and registration can be claimed under section 80c provided possession happens in the same financial year in which the property was registered. Since your registration has happened in 2013 and possession will be in 2015, you cannot claim this exemption.

  11. ashalanshu says:

    Dear Rohit, the answer is both of you can claim deduction under section 80C for the flat in question towards stamp duty paid by each of you as individual shares in the house property, within the over all limit of 1L Rs. for an individual.

    Thanks

    Ashal

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