Understanding Tax Benefits on Registration and Stamp Duty Paid on Purchase of Property?

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Did you know that you get tax benefits on the registration and stamp duty that is paid on the purchase of a property. These tax benefits are available under Sec 80C of the Income Tax Act.

Not many individuals know of this provision. So, the next time you pay your registration and stamp duty on property, make sure you claim the tax exemption.

Tax Benefits on Registration and Stamp Duty Paid on Purchase of Property
How much can you claim?

Sec 80C allows you a tax exemption of up to Rs 1.5 lakhs. So, if you have paid a registration and stamp duty of Rs 2 lakhs, you can claim only up to Rs 1.5 lakhs. You cannot claim more than what the provision allows. Also, if you have claimed Rs 1.5 lakh for registration and stamp duty you cannot claim other tax benefits under SEC80C for things like LIC, PPF, EPF etc.
Tax Limit Under Sec80C enhanced in Union Budget 2014-2015

Finance Minister Arun Jaitley only recently enhanced the tax limit under SEC80C of the Income Tax Act. Hitherto, the limit was only Rs 1 lakh. It has now been enhanced to Rs 1.5 lakhs. Remember, that the stamp duty and registration fee paid has to be claimed in the same financial year in which it is incurred. Two joint holders may be able to claim equally on the amount paid.


So do not forget to claim the tax exemption that Sec 80C allows you. But, do remember that the limit is just Rs 1.5 lakh only.


Read more about: tax benefits, property
Story first published: Saturday, October 25, 2014, 9:37 [IST]
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