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deduction on stapm duty for registration of house

barkha (Employed) (35 Points)

20 December 2007

Please let me know if stamp duty paid for the registration of a house during the current year can be claimed as a deduction.

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CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 20 December 2007

Stamp duty and registration fee expenses incurred on the cost of purchase/construction of a new residential house property also qualifies as deduction for the purpose of sec 80C. Sec 80C (2) (xviii) (d) specifically provides for such deduction. You can very well claim the entire amount paid towards registration fees (stamp duty). The said section is reproduced below for your ready reference: (xviii) 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: (d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee but shall not include any payment towards or by way of: (A) The admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder or member; or (B) 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 in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or (C) Any expenditure in respect of which deduction is allowable under the provisions of sections 24.

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CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 20 December 2007

For Further Query kindly PM me Thanks & Regards C.A. Amit Daga

ghanshyam (student) (78 Points)
Replied 21 December 2007

Respected Sir, we had purchased a land in delhi in 1990 and we have a power of atorney of this land. now we wnat to renew that registry.will we have to pay any stamp duty or registration fees to govt thanx & regards Ghanshyam