DEDUCTION U/S 80C OF STAMP DUTY PAID FOR PURCHASE OF PLOT.

This query is : Resolved

Amitaca (Querist)
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22 November 2008 I HAVE PURCHASE a PLOT ON DEC 2007& PAID STAMP DUTY & REGISTRY CHARGES RS. 78540.THE CONSTRUCTION OF HOUSE ON THE PLOT WILL START ON 2009.MY QUESTION IS WHETHER I CAN CLAIM DEDUCTION U/S 80C FOR STAMP DUTY & REGISTRY CHARGES IN THE A.Y 2008-09.

Ravikumar.G

Ravikumar.G (Expert)
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22 November 2008 No you cannot claim.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 November 2008 Section 80C doesnot permit you for a deduction for the said amount.

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Amitaca

Amitaca (Querist)
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22 November 2008 BUT IT IS WRITTEN IN THE BOOK THAT STAMP DUTY REGISTRY CHARGES& OTHER EXPS FOR THE PURPOSE OF TRANSFER OF SUCH HOUSE PROPERTY TO THE ASSESSE

K V Subba Rao

K V Subba Rao (Expert)
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22 November 2008 True-Stamp Duty, Registration fee and other expenses for transfer of house property qualify for Deduction u/s 80-C but you would be able to claim Deduction in FY in which construction of house is completed and you start returning the income under Income from House Property either as self-occupied or let out.

In your case, Registration expenses are incurred in Dec 07. House construction will commence as per your expectation) in 2009.

So as far as FY 2007-08 (AY 2008-09) is concerned, investment is in the form of land or site only and not in the form of house property.

Even in the year of completion, say, FY 2010-11, you will not be entitled to claim Deduction u/s Sec-80C. If you could prove that you had taken loan for payment of Registration Expenses and repaid it during FY 2010-11 in which house is completed and you return the income from house property, you could be to able to claim Deduction only to the extent of repayment (subject to limits prescribed)

To put it simply, so long as you hold the asset in the form of site or plot or land, you will not be able to claim Deduction; otherwise don't you think that every body would do the same and try to seek exemption and later take a stand that they changed their mind for construction

Nevertheless, keep record of Registation expenses safe. It will help you in including it under 'acquisition cost' when need arises, if ever property is sold away.