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Fight b/w section 54F & 80C

CA Sukriti Jain (Senior, EY) (1184 Points)

04 September 2015

I have sold a Long term Asset, resulting in LTCG. I invested the proceeds in Residential House property to avail exemption u/s 54F. along with the purchase price of the house, i also incurred Stamp duty & registration fees of rs.10 lacs

My query is - can I claim BOTH exemption u/s 54F (10lacs) & deduction u/s 80C (upto 1.5 lacs), wrt to the Stamp futy & reg fees.

& if both the benefits are available simultaneously, is there any specific provision of law or case law which says for or against...

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46 Replies

Darpan (Student) (81 Points)
Replied 04 September 2015

Hello,

I don't think you can claim an exemption under both sections.

But prefably u should claim it under Section 54F as it will reduce your Long term Capital Gain which is charged at a flat rate.

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CA Sukriti Jain (Senior, EY) (1184 Points)
Replied 04 September 2015

do u have any case law / Provision to quote? Coz in its absence, it will be better to interpret the law to the benefit of assessee.

S. Shiroor (Others) (1207 Points)
Replied 04 September 2015

Stamp Duty and Registration Charges for a home: The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

CA Sukriti Jain (Senior, EY) (1184 Points)
Replied 04 September 2015

Shiroor, whether deduction u/s 80C can also be claimed along with exemption u/s 54F, simultaneously, for the same amount .ie 10lacs. ie double benefit for single expenditure. is it possible?

S. Shiroor (Others) (1207 Points)
Replied 04 September 2015

No 8.5 lk for 54F and 1.5 lk for 80C inv. You cannot claim both simultaneously . Like there is no double taxation there is no double deductions also.

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CA Sukriti Jain (Senior, EY) (1184 Points)
Replied 04 September 2015

any case law? as this is not double deduction. one is exemption. one is deduction. and chapters are also different.

S. Shiroor (Others) (1207 Points)
Replied 04 September 2015

Agreed it is not double deductions but one is a deduction and other is exemption. But you are taking double benefits. Both are used to reduce your tax liabilitywith same source of funds

If your Tax liability reduces with same application of funds then no Assesing officer will allow this.

Other experts also plz throw some light on this

CA Sukriti Jain (Senior, EY) (1184 Points)
Replied 04 September 2015

Thanks S.Shiroor, I appreciate your views.. and 'll look fwd for wht others hav to say on the same

kunal (student) (21 Points)
Replied 04 September 2015

no vijay, service tax ki liability 10,00,000 ki turnover dene k baad aati h.....before 10lac its up to you...whether to collect service tax and pay to govt. or not.

pranit (na) (66 Points)
Replied 04 September 2015

Section 80A restricts deduction under chapert VI A. Howere it does not have any word regarding restriction on amount paid for stamp duty n registration fee. Further u can not claim 80c dedution against long term capital gain. However if u have income from any other head of income u can claim deduction u/s 80c against such income. So u r free to claim such amount u/s 54F n 80c. Pranit Patil

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GIRIDHAR DANDE (Cost Accountant) (1956 Points)
Replied 05 September 2015

There is no provision that we should do like this so we can claim under both and no judicial pronouncement as of now .. And cbdt circular clarifying also .

GIRIDHAR DANDE (Cost Accountant) (1956 Points)
Replied 05 September 2015

And there is no notwithstanding clauses made on this that sec 54F claimed u cannot claim under any other section ., same with respect to sec 24 and 80EE w.r.t deduction on loan interest if 24 exhausts and 80EE can be claimed is assessee view and section did not tell that 24 exhausted u can come here and claim .