Claim Tax Exemption on Stamp Duty and Registration Charges u/s 80C

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Whether Stamp Duty and Registration Charges are exempted from Income Tax?

Stamp Duty and Registration Charges 80CStamp Duty and Registration Charges are the heftiest expenses which have to be paid while buying a house to get the property transferred in your name. Stamp duty can be as high as 8% of the property value and registration charges could roughly be around 1% of the property value. So in total they add up to around 8% to 10% of you house cost.

To give some oxygen to home-buyers, Government included stamp duty and registration charges paid to be deducted from the total income under the section 80C.

Stamp Duty and Registration Charges Deduction Allowed


Stamp Duty and Registration Charges are covered under Section 80C, thus falls in the threshold limit of Rs.1.5 lakhs. Any amount paid over and above the threshold limit is not eligible for deduction that means maximum amount of deduction of Stamp Duty and Registration Charges paid is restricted to Rs.1.5 lakhs.

These expenses can probably exhaust your full threshold limit but do remember that there are other significant avenues covered under the same section, such as LIC, PPF, 5 year tax savings fixed deposit etc.

Read: How to Maximize Tax Savings on Salary Income

Conditions for claiming Stamp Duty and Registration Charges deductions u/s 80C, specifically under section 80C(2)(xviii)(d) of the Income Tax Act, 1961 are:


1. Only Individuals and HUF assesses are allowed to claim deductions of Stamp Duty and Registration Charges paid.

2. Deductions can only be claimed in the year of actual payment. Suppose you bought house and paid Stamp Duty and Registration Charges in September 2014, than you can claim deduction for these expenses u/s 80C in the financial year 2014-15 only. Expense for earlier year cannot be claimed.

3. The house should be in the name of the assessee and these expenses of Stamp Duty and Registration Charges must have been paid by the assessee himself/herself. No deduction if the expenses are paid by any other person.

4. For claiming deduction, you must possess the house also i.e. Payment for under-construction is not allowed. In simple words both payment of expenses and possession of the house must be in the same fiscal year for claiming expenses.

5. Deductions can only be claim, if expenses are for new residential house property for self and not for a resold property. Payment for commercial property is also not eligible for deduction under this section.

6. Joint owner can individually claim deduction of the expenses in the proportion they share the house property up to Rs.1.5 lakhs each under section.

7. No expenses can be claimed if assessee has already occupied the house property either wholly or partially. The house property should be new and had not been in use for the assessee’s own residence.

8. Stamp Duty and Registration Charges paid for residential house qualifies for deduction under section 80C, any expenses for paid residential plot does not qualify for tax deduction under Section 80C.

9. Any other expenses paid for the purpose of transfer of property shall also be eligible for deduction such as service tax paid can also be claimed as deduction under section 80C.

Words of Wisdom

Recheck that the stamp papers are in your name and do not forget to claim the expense of Stamp Duty and Registration Charges while filing the income tax return of the relevant financial year, as it is a one-time benefit and cannot be claimed later.

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About Sanyam Jain

SimpleInterest.in is started by Sanyam Jain, a commerce student who loves to share his knowledge and believe on “Sharing is Caring”. He writes article on Taxation, Financial Planning, Investment and give reviews on IPO and Insurance Schemes.

39 thoughts on “Claim Tax Exemption on Stamp Duty and Registration Charges u/s 80C

  1. mukesh jindal

    Sir
    As per budget,under 80c our limit is incrased 1.5l to 2.0 lakh, with Rs 50,000 more on NPS contribution.
    what does it mean. how to calculate.
    My saving Rs 60.000 nps
    other saving Rs 12,000
    Pl reply

    Reply
  2. mukesh

    Dear sir
    mera dda scheme 2014 me flat nikla he mere flat ki total cost 794000 he mujhe is per kitni stamp duty paid krni hogi..janta flat nikla he jo old constracted he

    Reply
  3. Aditya

    Sir,
    What proofs we need to submit to claim tax benefit for stamp duty and registration charges under 80C?

    Reply
  4. mukesh

    In oct 2010 through Delhi dev auth (DDA) scheme my wife was allottee.
    AND my name was also added as joint holder in registry (as mandatory by DDA)
    possession- nov 2010. I am co-applicant for home loan with my wife. All home loan installment are being paid from my pension account
    pl clarify:
    1) Can i claim stamp duty and registration charges now and what is my share for tax deduction.
    2) Can i claim all interest and principal amount, as IT is paid from my pension account AND my wife has no source of income also she is not filing any return

    Reply
    1. Sanyam Jain Post author

      1. Since you have already got possession in NOV 2010 and paid stamp duty in previous year, this makes you ineligible for deduction. Both possession and payment of stamp duty charges should be in the same fiscal year to get benefit of deduction u/s 80C.

      2. Though payment of EMI is made through your account but in case of co-borrower, one person can claim deduction upto his share of the property. The certificate issued by the housing loan company, showing the split between principal and interest for the EMIs paid, is required for claiming tax benefits.

      Reply
  5. aarti

    Sir adding to the information,the flat was vacant…no one was living….water bills had not been paid…no electricity connection….i got it all done….still it would b considered as a resale property???

    Reply
    1. Sanyam Jain Post author

      If the flat gets registered once than the same flat cannot be used to avail any benefit of stamp duty and registration charges u/s 80C in future.

      Reply
  6. aarti

    Hello sir,
    I purchased a DDA flat from the original allottee….can I claim tax deduction on stamp duty….i purchased it thru home loan..
    Pls answer as I have to file income tax return…
    Thanks

    Reply
  7. shailesh m

    Dear Sir,
    I have purchased new flat in March-15 and got registered in the same month. I will be receiving the possession in Oct 2015. Can I claim the stamp duty paid?
    If I’m not eligible to claim expenses because both possession and payment of stamp duty are not in the same financial year, then should I claim the same after getting possession? i.e. in next financial year?

    Please give reference link if any.
    Awaiting your reply.

    Thanks!

    Reply
    1. Sanyam Jain Post author

      For claiming deduction u/s 80C both payment and possession should be in same financial year. Since you are not fulfilling the condition, you cannot claim the deduction of the stamp duty paid in any year.

      Simply you have lapsed your eligibility of claiming deduction by paying stamp duty & registration charges and taking possession in different financial years.

      Reply
  8. Narayan Mande

    Dear Sir,
    I had purchased a flat in September 14 & its ready to receive possession in this month. Can I claim Stamp duty & Registration fee while filing ITR under 80c. Actually under 80c I had given documents having amount 171000/- but form 16 showing only 150000/- hence Pl reconfirm. Also I had listened that this can be claimed in 2 years also.
    Thanks in advance.
    Narayan

    Reply
  9. Heena

    Hello Sir,

    I have purchased a residential flat, which was under construction in the year oct 13, by mistake the benefit of 80C was not taken in the Income tax return. Can i file revise return? In the same year my brother also purchased residential flat but which was under construction and possession of same is not given upto now. whether he can also claim 80c deduction.

    Reply
  10. Pratik Acharya

    I purchased a flat in july 2014 , and I havnt got possesion yet. And I forgot to claim tax benifit. Can I do it while filing tax return??

    Reply
    1. Sanyam Jain Post author

      Yes, this is the assessment year for the financial year 2014-15. Every tax savings investment or expenditure you made in the last year i.e. 2014-15 is available to claim while filing ITR before 31st August 2015.

      Reply
  11. Arjun kulkarni

    Hello, I booked a flat in feb 15 and paid stamp duty and registration charges in mid march 15.
    I got possession of flat in month of may15. can I claim deduction under 80C for financial yr 14-15.

    Reply
    1. Sanyam Jain Post author

      You can claim deduction of the stamp duty and registration charges paid u/s 80C only if the registration is done i.e. flat gets registered on your name before 31st March.

      Reply
  12. Tanweer Khan Ghori

    i have purchased a house got register on November 2014, but i am not aware of 80c exemption, after renovation work in the month of April moved to house till march 2014 i have claimed HRA till march. till i have not file the returns, how i have to claim for exemption ?

    Reply
  13. Pratik Mayekar

    Hi,

    I recently buy a new property in paid registration & stamp duty charges of RS 150000, So i want to know what if I claim this amount will i get refund of the amount or my deduction of tax will be saved? And when should I file this claim as I had brought it on June 1st 2015.

    Reply
    1. Sanyam Jain Post author

      You can claim deduction of the amount paid towards stamp duty and registration charges upto Rs.1.50 lakhs under section 80C while filing tax return for the assessment year 2016-17 i.e. previous year 205-16.

      Reply
  14. Swapnil

    Can child take 100% benefit of stamp duty and registaration under 80C if property taken jointly by father and child

    Reply
    1. Sanyam Post author

      How can a child below 18 years of age can file ITR?? His/her income should be clubbed with the income of the parent.

      Reply
  15. Ashwin

    Hi,
    If a house is purchased jointly by husband and wife, Can husband only claim for deduction for 100% amount paid against stamp duty and Registration charges If wife is not having any income source?

    pl reply.

    Reply
    1. Sanyam Post author

      No, in joint-ownership, one can claim the deduction only up to the amount of his/her proportion of the ownership subject to maximum of Rs.1.50 lakhs u/s 80C. So if you own 50% of the property and paid 100% stamp duty and registration charges alone say Rs.50000, still you can claim only 50% i.e. Rs.25000 as deduction u/s 80C.

      Reply
  16. Vinit

    I have purchased a residential plot this year and also i have possession of the same. Will the stamp duty qualify for 80C deduction.

    Reply
  17. Sandeep bavaskar

    I have. Purchased a resale flat. If I can not claim exemption under 80/c for stamp Duty And registration, is there any other section under. Which I can claim. For exemption for income tax.
    Please reply.

    Reply
  18. Ankita Phatak

    Hello Sir,

    Me and my husband purchased our first flat in Oct 2014 and got registered in the same month. We will be receiving the possession in Aug 2015. We have availed loan from HDFC and have started paying Pre EMI since Nov 2014.
    Can we claim the stamp duty paid ? Can we claim the interest paid?

    Awaiting your reply.

    Thanks!

    Reply
    1. Sanyam Post author

      Since you have paid stamp duty and registration charges in the month of oct 14 and will get possession in august 15, you will not be eligible to claim expenses because both possession and payment of stamp duty have to be in the same financial year to claim deduction.

      Reply
  19. vaibhav

    is it only for Under construction and hope of getting possesion in same year?
    I will do deed this March 2015 and possesion is due may 2016, can i claim in this case?

    Reply
    1. Sanyam Post author

      Prior to possession/completion of the property, you will not be able to claim any tax benefit on principal repayment, registration expenses, or stamp duty.

      Reply
  20. satyendra kumar singh

    Sir in December i purchased a flat of 25 laKH . I paid around 1.70 lakh for the registration and stamp duty . i purchased it from the owner of the flat it means ut was not a new property can I claim for the amount paid as registration and stamp duty in column 80c ? Please reply soon

    Reply
    1. Sanyam Post author

      Unfortunately, you cannot claim the amount of stamp duty and registration charges paid for buying the resale flat under section 80C as the rules do not allow same benefit for same house property to different assessee.

      Reply

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