Stamp Duty and Registration Charges Deduction u/s 80C
How to Claim Tax Exemption on Stamp Duty and Registration Charges u_s 80C

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

Updated on 22 Jan 2022

You have to pay Stamp Duty and Registration Charges while buying a house. You pay stamp duty charges to government to get the property registered in your name. Since stamp duty can be as high as 8% of the property value (varies from state to state), it adds up to around 8% to 10% of your house purchase cost.

Government in-return has given you the exemption on the stamp duty and registration charges paid (to be deducted from your total annual income) under section 80(C) of Income-tax Act, 1961.

Stamp Duty and Registration Charges Deduction Conditions

You can get tax exemption on Stamp Duty and Registration Charges up to Rs.1.5 lakhs. Any amount paid over and above this limit is not eligible for the deduction. Along with that, you can apply only in the year the actual payment is made.

For example, If you bought a house in october 2019 and paid Rs. 2 lakh as stamp duty charges. Now you will get exemption on your expense of Rs. 1,50,000 out of actual amount of Rs. 2,00,000 and you will have to take exemption in the Income-tax return filing of 2019-20. You can’t get exemption in the next years.

Read: Tax deductions u/s 80C

Other important conditions for claiming Stamp Duty and Registration Charges deductions

1. Only Individuals and HUF assesses can claim tax deductions on Stamp Duty and Registration Charges paid.

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

3. You must possess the house also to claim the deduction.  In simple words, both payment of expenses and possession of the house must be in the same fiscal year to claim expenses.

4. You can claim tax deductions 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. A joint owner can individually claim a deduction based on their share in the property up to Rs.1.5 lakhs each.

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. You can claim a tax deduction against Stamp Duty and Registration Charges paid for a residential house only. Any expenses for paid residential plot does not qualify for tax deduction under Section 80C.

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

Remember –

If you are the owner of house and you have yourself paid the stamp duty & registration charges, then do not forget to claim the expenses while filing the Income-tax return of the relevant financial year. Because its a one-time benefit that you shouldn’t miss at any cost.

Let me know your experience in the comments.

113 thoughts on “How to Claim Tax Exemption on Stamp Duty and Registration Charges u/s 80C”

  1. I have purchased flat in jan 17 and paid stamp duty got registered in feb 2017 ,it was a ready to move property .
    Do i get Tax rebate on stamp duty and registration amount . What documents i need for claim and can i submit these to my employer so that we will deduct tax from salary accordingly or i have to claim it later .

    Please advise

    1. CA YUVRAJ JAIN

      YES U CAN CLAIM DEDUCTION UNDER CHAPTER VI A SEC 80C ,FOR PAYMENT OF STAMP DUTY +REGISTRATION CHARGES

  2. lets say, if i purchase the stamp paper in month of March, 2016 and registration will happen on April, 2017.

    Can I claim the benefit in FY 2015-2016(AY 2016-2017) as purchase date is March, 2016?

  3. Is it necessary to pay stamp duty and register flat while builder is giving posession?
    I dont have budget to pay total possession charges plus stamp duty and register cost at one go.
    Can i do it later in next one year by my own?
    Posession is expected in july 2017 noida extension.

  4. Hi sir

    I have taken a home loan with SBI against mortgage of site. Prior to loan sanction, i was required to transfer the asset to SBI name with registration with my cost. Accordingly i had purchased stamp paper value Rs 13000/- and registered the document as required. Please clarify can i claim stamp duty for this ?

    1. CA YUVRAJ JAIN

      YOU CAN CLAIM IF U HAD PAID STAMP DUTY AND REGISTRATION CHARGES FOR PURCHASING RESIDENTIAL HOUSE PROPERTY.BUT IF ITS A VACANT LAND ,THAN U CANT
      .MORTGADGE POINT IS IRRELEVENT SIR.
      HOWEVER A GOOD QUERY

  5. Hi
    STAMPS purchased in March 16 and registration done in Aug 2016 can i claim stamp duty and registrations under 80c for year 16-17

    thanks

  6. Hi
    purchased flat stamps purchased in March 16 and registration done in Aug 2016 can i claim stamp duty and registrations under 80c for year 16-17

    thanks

  7. Rajendhar Mamidala

    Hi,

    I have purchased under construction house in indiabulls park in Aug 2014. I registered and stamp dutied my house in july 2016.

    Can I claim the registration amount under 80c for tax benefit?

    Regards
    Rajendhar Mamidala

    1. Hi we have purchased a Flat in July 2016 jointly with my son but can we claim under 80 c even though our limit of 1.50 lacs being fullyot used under stamp duty exemption

  8. I think this point not correct in above article. Nothing such mentioned in section 80C

    Please clarify the same – what is the meaning of resold property

    “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.”

  9. i purchased a Flat for Rs:15 L.Got full possession in 2008.I am getting the flat registered(pay stamp duty)in 2016.At the time of registration the Builder is asking me for the service tax of 3.75% of the circle rate(which is Rs:59L).
    My querry is:1)Do I have to pay service tax now after 8 yrs of possession of flat.
    2)If Yes,then do I have to pay 3.75%of circle rate(59L) prevailing in 2016 or actual price which I paid to the builder(15L) for purchase of flat.

  10. Hi,

    I gifted home to my sister, she paid 3% stamp duty & 1% registration amount. can she will get benefit under 80c.

  11. Hi,

    I have paid the stamp duty and registration amount on 30th march 2015, and the registration is done on 5th april 2016. Will I be eligible to claim tax deduction under 80c in year 2016-2017?

  12. Hi,

    I have purchased an apartment in my home town and my parents stay there. I live in a different location on rent, can I claim the stamp duty and registration fees paid during Oct 2015.

    Thanks..

  13. I have purchased plot in FY 2015-16 to construct the house, i took composite loan for the same, can i claim in 80C the amount paid for stamp duty and registration?

  14. Hello Sir,

    My father has expired recently. So my mother and sisters are transferring my home to my name using the Relinquishment deed. I am paying the registration fee and stamp duty. So can I claim for the amount paid as registration and stamp duty in column 80c

  15. Hi,

    I purchased a flat in DEC 2016 and i occupied the house.

    Please let me know can i use STAMP duty as investment prrof

  16. What if I paid for stamp duty and reg. on Oct 2015 but got the possession on April 2016, so cant I claim it in
    2016-17 tax assessment ??

    Does it mean govt do not have any provision for it ??

  17. Sir I purchased a newly constructed house in September 2015 in the name of my wife. My wife is a house wife. Can I claim for stamp duty and registration fee under 80c deduction.

    1. Dear Vishal,

      If the property has been acquired in the name of wife only, but source of fund is husband.

      Here the fact is that the property may have been purchased in wife?s name may not mean that the property belongs to her. If the said house property has been purchased out of husband?s own funds (but property in wife?s name) then husband becomes the actual owner of the property. To claim income tax deduction, husband needs to make a declaration with the Assessing Officer (AO) under Benami Transaction Act 1998, stating that he is the real owner of the property though registered in his wife?s name. Once it is done, he will entitled to all deductions available to an owner of the Property relating to repayment and interest on housing loan under the Act.

      If the property is purchased from the money gifted to your wife by her parents(In the name of Stridhan or with any other meaning) or received from any relative then you cannot claim the benefit of deduction.

  18. What proof i have to submit to claim stamp duty and registration charges under section 80c? i m going to get the possession in march 1st 2016 and the property is registered in 31st dec 2015. to whom should i contact for stamp duty and registration charges proof?

  19. Rajanikant Patel

    I have brought home in 22 Dec 2015,
    Loan sectioned on 2nd Jan 2016 from HDFC bank,
    Registration done on 12th Jan 2016,
    And My Pre-Intrest is in this month around of 18 day till 1st Feb,after that the EMI will continued .

    my Query is that ,can i able to make Tex exemption EMI of the month of FEB and MARCH 2016 +Stamp duty,Registration charge+Pre intrest of Home loan .

    I will have to submit my Tex actual investment before 20th Jan 2016.

    can i eligible for claim for FEB and march 2016 EMI of home loan.

    Regards,
    Rajanikant

  20. Hi,

    I have bought a new property for which I and my wife are joint owners (mentioned in agreement). But the stamp duty and registration receipt is in my wife’s name only as registration officers said that they write only one person’s name (first owner) on stamp duty and registration receipt. If this is the case still we both can claim tax benefits on stamp duty and registration by giving agreement copy as proof correct? Or my understanding is incorrect?

    1. Hi,

      I believe you can go ahead claim deduction by disclosing the terms of share of ownership mentioned in your agreement. All you need is to attach your sale deed also as proof with share of ownership agreement( Including the EMI payment obligation share between you and your wife).

      You must also have a completion/occupancy certificate or proof for claiming the deduction.

  21. Hi experts,

    I booked a flat in an underconstruction property in August 2014 and paid stamp duty and registration in November 2014. Due to some issue with regards to my floor being turned into a refuge floor, the registration got delayed.

    I couldn’t claim tax exemption for this last year (2014-15) as I didn’t have the sale deed which was required as proof. I got my flat registered in April 2015. Can I claim exemption considering

    a ) it’s an underconstruction property with possession due in 2018
    b) I made registration charges in one year and got the flat registered in the next

  22. hi,

    I bought a villa in a budding venture and got the land registered in Aug. 2015. The property is still under construction and i am paying my Pre-EMIs. As I read thru this blog, I understood that one can claim deductions for Stamp duty and registration paid in favour of a new home. Now, as i have registered the plot can I calim those benifits under 80c? Please suggest.

    Thanks!

    1. 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.

  23. What exact documents are required to claim stamp duty and registration charges? We have the bill from Registration office for having paid registration charges. How to claim for the stamp paper charges we paid for 85,000, simply submit photocopies of the bond agreements?

    1. Hello Mr. Sanyam,

      I do have the similar problem, All original documents are with bank (where I have taken the home loan).
      Shall I submit photocopies of the bond agreements.

      Plz reply

  24. I have purchase a flat. In 2013 Mr.X paid full amount to the builder but does not registered it. In the year 2015 Mr. X sale the flat to me which was registered by the builder directly to me after confirming from Mr.X (Mr. X is the confirming party of the sale deed). Can I claim registry cost deduction u/s 80c?

  25. Hello Mr. Sanyam,

    Could you please provide the exact wording or the rule from Income Tax Rules where it says Stamp Duty and Registration charges can be claimed as deduction u/s 80C.

    Thanks in advance,

    Regards,
    Pradeep

  26. Hi Sanyam, nice to have such an informative article.

    I am one of the new person entering into this complicated Indian Tax system. 🙂

    Please could you advise if the Registration and Stamp duty amount can be claimed for tax benefit if the property is owned by both Owner and Co-owner.

    If yes, then what documents we both would need to produce for claiming it.

    Thanks in advance!

    Regards,
    Lalit

    1. Yes, in case of join-ownership, Registration and Stamp duty amount can be claimed for tax benefit in the proportion of the ownership and if no proportion is fixed than in 50:50 Ratio.

      1. Thanks Sanyam.

        Just for my knowledge, do we need to go for some procedure to decide for ownership?

        We both are working then in this case what document we would require to give our employer?. Actually, on the Reg. receipt only owner name is reflecting then in that what should we produce to our employer.

        Please could you help me to clarify.

        Many Thanks,
        Lalit

        1. You need to provide original reg receipt to your employer for claiming deduction and if both of you are working than you can both provide reg receipt copy to your respective employers with a self-declaration of the proportionate ownership.

          If the ownership is not joint and you would like to make it joint-ownership, you can do so by executing a sale deed or a gift deed.

  27. Hi,

    I am a salaried person and planning to buy a House (i.e. a resale property). The Registry & Stamp Duty would be around 2 Lac.

    Query 1 (Regarding 80-C):
    As mentioned in the 5th point of “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:”, i.e. “Deductions can only be claim under this section, if expenses are for new residential house property for self and not for a resold property”… , will there be no exception on above Registry + St.Duty expenses ?

    Query 2 (Regarding Interest on Loan):
    What would be beneficial from “buying this property in DEC-15 or APR-16) in context of exemption on Interest ? In other words, “To get maximum Income Tax benefit from Interest + Principal paid + Registry + Stamp Duty + EPF + PPF , should I purchase property in this financial year or next financial year?

    Looking forward for your kind advice.

    Regards
    Sharad.

    1. 1. You cannot get deduction for stamp duty and registration charges paid for resold house property.

      2. The maximum limit of section 80C is 1.50 lakh which includes home loan interest, PPF, EPF, stamp duty, registry, LIC etc. In any case all of this would never fit into this small basket of 1.50 lakhs, however, your time limit in this year is short, so i advise you to buy house property in Dec 2015.

      1. Hi Sanyam,

        Does the home loan interest comes under 80C or section 24?

        I think the principal component is covered for 80C.

        Following is my calculation:
        Net Income: 6,46,816

        Tax Rebate: 2,50,000
        HRA: 97,416
        Transport: 19,200
        Mediclaim: 9,000
        ProfessionalTax 2,500
        Interest: 1,18,062
        80 C: 1,50,000

        Total Deduction : 6,46178

        Under 80C: I have LIC of 80,000 ; PF of 29220 ; Principal Component 10638 ; Stamp Duty & Registration of 30780

        Net taxable income: 6,46,816 – 6,46,178 = 598

        Can you please let me know if this is correct or not.

        Awaiting for your reply.

        Sanjay

  28. I have purchased a flat 2 months ago worth 45 lacs. I am avaling a home loan for it, where i will be paying pre-emi till next 2 year and then complete emi. I am getting posession of the after 2 year. Its my first flat and its new construction. My query is, am i eligible for the tax exemption in lieu of service tax i have to builder so far. I have paid about 2 lacs of service tax over and above flat booking cost. Also, can i get tax exemption on pre-emi part am paying to bank? Please suggest.

    1. 1. No, you cannot avail tax deduction of service tax portion alone. You can claim it together stamp duty and registration charges.

      I am eager to know why you have paid service tax to builder that too Rs.2 lakh?

      2. You can claim tax deduction only of interest part not principal part of your pre-emi and that too only after you get possession of the flat. You can claim 1/5 deduction per year for 5 years after getting possession.

  29. I bought a house in 2010 with hom eloan.Registration and stamp duty in Aug 2014.Can i get exemption for stamp and tax duty in return 2015-16

  30. 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

  31. 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

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

  33. 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

    1. 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.

  34. 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???

  35. 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

  36. 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!

    1. 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.

  37. 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

  38. 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.

  39. 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??

    1. 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.

  40. 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.

    1. 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.

  41. 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 ?

  42. 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.

    1. 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.

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

  44. 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.

    1. 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.

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

  46. 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.

  47. 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!

    1. 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.

  48. 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?

    1. 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.

  49. 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

    1. 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.

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