Exemptions available under Sec. 80C for Stamp Duty Paid

By CA Yash Shah 0

Exemptions are available under Sec. 80C for Stamp Duty Paid. This article is about the exemption available to the stamp duty paid for the house purchased for any purpose which may be for investment or any other purpose, but with some restrictions applied to it which I have simplified for your better understanding. Find Complete details regarding Exemptions available under Sec. 80C for Stamp Duty Paid from below –

Exemptions available under Sec. 80C for Stamp Duty Paid

Exemption available under Sec. 80C :- 

Stamp duty paid for the purchase of the house which may be for the purpose of investment or otherwise. Stamp duty may be as high as 7% and Registration charges would be around 1% (Eg. Restricted to Maximum 30,000/- in the state of Maharashtra) which totals to around 8% is available as deduction to the assesse subject to some of the conditions. This stamp duty exemption is available under Section 80C of The Income Tax Act, 1961 so the total deduction would be limited to Rs. 150000, which is the current deduction available, which may change from time to time. Now I am discussing the conditions or the criteria required to get the exemption under this scheme.

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  • The first and the foremost criteria to satisfy is that this exemption is available only to the individual and HUF. The other assesses such as company, partnership firm, association of person, etc are not allowed to take the benefit of the same.
  • The house should be purchased in the name of assessee who intends to claim the benefit and not in the name of any other person. If the expense is paid by another person, than that expense would not be allowed as deduction.
  • The stamp duty paid for the residential house is only covered under the ambit of this section and the stamp duty paid for purchase of commercial property is not eligible for the same benefit.
  • The exemption can be availed by the joint owners of the house if the payment has been made by them in their personal names only.
  • The Deduction would be available to the assessee in the year of payment only and would not be available in the successive years. This means that even if there is not a huge income in this year and if you pay some stamp duty which exceeds the income amount than the deduction will be allowed upto the amount of income only. It cannot be carried forward the next year.

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