When a person sets out to buy a property apart from the exorbitant property rates he also has to bear Stamp duty and Registration charges. In order to reduce some burden, Government has provided deduction under section 80C for Stamp duty and Registration charges of property , paid by them. Apart from this , section 80C also encourages Investment in house property by allowing a Deduction for the total amount paid by installments against any home loan taken for purchase of house property
The maximum Deduction of Stamp duty and Registration charges paid is restricted to Rs.1,50,000 . Do note that this Deduction is available only to Individuals and HUFs and not to other taxpayers. Such deduction on stamp duty and Registration charges is allowed in the year of payment and not for earlier years. Let us take an example, If Mr. Ramesh buys a house and pays Registration charges in June 2015, then Deduction for the same can be claimed only in Financial Year 2015-16. Also, for claiming this Deduction you have to have possession of the house in the same year. It is not allowed for under construction property. In case of joint ownership of the house, Deduction in respect of these expenses can be claimed jointly in the proportion of their share in the house property up to Rs.1.5 lakhs each.
This was about Stamp duty and Registration charges that are paid in case of buying of house property.
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