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I.t,.deduction for reg & stamp duty payment

arun laxman gaikwad (accountant) (106 Points)

21 March 2017

D/Sir One of our employee has purchased a house and paid registration and stamp duty in cur fin year. He has availed loan but EMI will start from Apr 2017 onwards. Can we allow him deduction for regt and stamp duty payment in cur fin year 2016-17 from his TDS on salary / Kindly advise. Reg Arun Gaikwad

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185309 Points)
Replied 21 March 2017

Check the following:

The Deduction would be available to the assesse in the actual year of payment only and would not be available in the successive years. This means that if there is not much income in this year and if you pay some stamp duty which exceeds the income amount than it would be upto the amount of income only. It cannot be carried forward the next year.

The possession of the house is must for claiming the benefit. The house which is purchased which is under construction and if the stamp duty is paid than that would not be allowed.

The house should be purchased in the name of assesse claiming the benefit and not to the other person. If the expense is paid by other person than that expense would not be allowed as deduction.

(Courtesy) refer : https://caknowledge.in/exemptions-available-under-sec-80c-for-stamp-duty-paid/