StampDuty & Registration Tax exemption

POSTED BY Sethu ON August 20, 2012 7:43 pm COMMENTS (30)

I will be doing my flat registration in a couple of days and would like to know the amount i spent towards registration+stamp duty can be exempted only if i m occupying the flat?

My possession will be one year from now so(next financial year).So can this be carried towards the next financial year assuming i cannot claim this year?

30 replies on this article “StampDuty & Registration Tax exemption”

  1. tejas says:

    Without Home Loan Can I Eligible For Exemptions For Paying Registration & Stamp Duty Under 80 C ?

  2. Nijo Vadukoot says:

    hello Taxsavers,

    I purchased a resale Flat in Feb,2017.

    Did registration and stamp duty of Rs. 2,94,000 in Jan 2017. can I get a exempt on it ?

    1. Yes, upto 1.5 lacs as its comes under 80C ! .

      But if you have already exhausted the limit , then NO

  3. arshad shaikh says:

    Im buying a flat in Pune.
    Registration done on 22 Jan 217
    Stamp duty + registartion paid on 22 Jan 2017
    Im not going for any bank loan.
    My builder has EMI scheme. Im paying EMI directly to the builder.
    Ill get flat possesion in Dec 2018.
    May i get any tax exemption for Stamp duty and registration amount i have paid.?
    For that purpose what type documents i have to submit ???

    Arshad shaikh

    1. Stamp duty can be claimed. You need to give the payment reciept and property paper

  4. sk says:

    Hi,
    I am buying flat. I have paid the down payment amount to builder and seems he will be paying the stamp duty and registration from it.
    In this case, will I be able to claim returns on stamp duty and registration amount or should i pay myself to claim?

    Thanks.

    1. Yes, you will be able to claim the stamp duty part. But it has to be paid from your end. generally the stamp duty part is paid by the investor himself

  5. Hargun says:

    I want to register my property on 31st March, 2016 by paying stamp duty however possession will be given only by 2-3 week of April 2016.

    Can i claim IT exemption on Stamp duty as part of 80C in current Financial year ?

  6. ashish says:

    Dear Manish , hi I need one opinion from you,Recently my mother gift house through Gift Deed and i paid the stamp duty charges for the same.Is this charge can be claimed for tax deduction under 80c but the problem is i am using this house for residence with my mother previously……….can i claim in such condition…

    1. Thats ok . You can claim it , but only for the financial year in which you paid it !

  7. HSHAH says:

    Dear Ashal

    If I do stamp duty in 28 th March 2016 & registration in 2 nd April 2016 then please indicate
    a) Do I have to pay addtional rise in stamp durty during registration?
    b) Whether deal is considered in 2015-2016 or 2016-2017 financial year as per Tax

    Thanks

  8. Satti says:

    Hi There,

    Can I claim the tax exemption on stamp duty, if the property is not yet occupied?

    I have the property registered in my name.

    Thanks,
    Satish.

  9. Kaushik G says:

    Hi Ashal,
    Is this provision applicable for under-construction flats also? I registered my flat in July 2014 though the expected construction completion is Dec 2015. Can I claim exemption of registration/stamp duty under 80-C for AY 2014-2015?

  10. mwilliams1122 says:

    Dear Ashal, you are right I goofed up with the dates and i need to correct them. I am feeling as If I am still in the year 2012 and considering last year as 2011. I need to prepare my self to accept the fact that I am in 2013 and not 2012. LOL!!! Please accept my sincere apologies. The dates are as follows: Stamp duty & Regn charges paid on 31st March 2012 and agreement done on 7th April 2012. Franking charges and registration charges paid on 31/03/2012 and date of agreement is 07/04/2012. Please reply. Thanks alot!!!

  11. Dear mwilliams, as per your dates, all the FYs are over & you can not claim any benefit. For 31st march 2011, the FY was 2010-2011. Actually this was your real FY as the payment was done in this FY.

    Even if we consider 7th April 2011, that too has gone into history for the FY 2011-2012. Now we are running into FY 2012-2013. How can you claim in current FY?

    thanks

    Ashal

  12. mwilliams1122 says:

    Dear Ashal, the dates are right as mentioned above. Stamp Duty and Registration charges paid on 31st March 2011 and Agreement done on 7th Aprill 2011. Can you please help me to know if i can get tax benefit in this financial year???

  13. Dear Mwilliams, can you reconfirm the dates?

    Thanks

    Ashal

  14. Dear Ashish, no need to check in forums, please check the below link in the official site of income tax http://www.incometaxindia.gov.in/home.asp

    http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=5cc98992-765c-46b0-a433-271b2e2b6901&rdb=sec&yr=a56ea192-3ca8-433a-a515-ed68a062eac7&sec=80c&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

    Please read carefully for stamp duty & registration charges in the above link.

    Thanks

    Ashal

    1. Keyur Jinwala says:

      Hi Ashal

      Though I’ve discussed this before, I’m still confused. The link that you’ve shared say following in header –

      for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property” (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—

      And then, in following bullets

      (c) repayment of the amount borrowed by the assessee from—…
      (d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee,…

      If you notice, it is clearly mentioned to that income from house should be chargeable… which indirectly means house should be capable of generating income. Basically, the same rule applies both to claim tax exemption on
      a) replayment of loan
      b) stamp duty

      As we all know, loan interest can be exempted only if possession is complete. Doesn’t that apply to stamp duty and reg fees as well (since they both are mentioned in same section on official income tx website)?

      I’m still confused. I’ve paid stamp duty in FY 2013-2014 and will get possession in FY 2014-2015.

      Is there any other way to get this confirmed? Like any official income tax helpline?

  15. mwilliams1122 says:

    I did my registration of my property on 7th April 2011 but I have paid Stamp duty & Registration charges on 31st March 2011 which is the last day of previous financial year ie FY 2010-2011. Can I claim tax benefit in this financial year as agreement of my property was done on 7th April 2011 which is falling in FY 2011-2012. Please help. Thanks 🙂

  16. ashish says:

    hey, can you please also tell me what documents are required to be submitted ?

    Thank u !! Thank u !!

    1. Sethu says:

      just the scanned copy of registration/stampduty receipts with your name – thats it!

  17. Sethu says:

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

    @Ashal – the above link says that the stamp/registration charges has to be paid in the previous year.

    Also is there a provison that this can be carried to the next financial year?

    1. Dear Sethu, prev. year here stands for FY where as we file our Income Tax return in AY. For given example – if you are registering your property in Fy 2012-2013, you ‘ll file your ITR in AY 2013-2014. Hence the prev. year for you ‘ll be FY 2012-2013.

      Please do note there is no provision of carry over of 80C benefits.

      thanks

      Ashal

      1. ashish says:

        Dear Ashal,

        I have searched this.. and now very confused. I get different answers in different forums.

        In my case, I have paid Reg/Stamp Duty in Sep-2012 But will get possession in 2015.

        Can i get Tax benefits for this now .. means for financial year ending March 2013 ?

        Best regards
        ashish

        1. Sethu says:

          yes – you can do that!

          i did my registration by July 2012 and i have submitted the relevant docs to my employer and its exempted already!

  18. Sethu says:

    @Ashal – thanks!

  19. Dear Sethu, the registration related expenses are available for tax benefit under section 80C & there is no need of actual possession. Sop feel easy & relax. Claim the benefit in the current Fy itself. In case your employer does not provide the benfit, please do not worry & claim the benefit at the time of filing your ITR next year June-July.

    Thanks

    Ashal

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