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 2020.

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.

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

  1. If I buy a house, not a new construction .Is it’s stamp duty is qualify as a saving under 80c for income tax reduction.

  2. HI Sir,
    I have doubt The property register Wife Name but Payment Done by only Husband .
    Wife House wife she never claim the benefit then whether her husband can claim the benefit or not.
    Please guide me.

  3. Hi
    Me and my husband purchasing a plot to construct house for self. Is stamp duty is exempted from income tax? Can I show it in exemptions?

  4. Hi
    I am purchasing a plot to construct house for self. Is stamp duty is exempted from income tax? Can I show it in exemptions?

  5. Have taken a loan for purchase of land and construction there on . Construction has started and possession is expected by September. I have paid RS 65000 at the time of registration of land in my name as stamp duty in the month of January. Can I claim it u/s 80 c

  6. I have purchased a house from builder
    Where builder will construct the house over land, and registry is also done on plot, possession has been given to me by builder.
    Can i claim the tax benefits for registry cost over plot.

  7. pramod upadhyay

    Hi
    I have registered a plot in my name .
    full payment done and got possession also. is stamp duty paid exempted under 80C .

    1. 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.

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  10. S MOHAMMAD ILIYAZ

    I HAVE PAID STAMP DUTY CHARGES FOR MORTGAGE HOUSE LOAN PURPOSE . CAN I CLAIM STAMP DUTY CHARGES UNDER section 80C

  11. Hi, I want to know the tax benefits that I can avail. Below are required information.
    1) My EMI started from April 2017 after getting final possession letter on jan 2017.
    2) Got my registry done on September 2017. Payment was done my me from my account. Wife is co-owner but EMI are paid by me only.
    3) Got the physical possession on Jan2018.
    4) Not going to shift in this financial year i.e. 2017-2018. Will stay in my rented house till March 2018 due to personal reason.
    Now, how can i and my wife avail tax benefit under 24, 80C and 80EE.

  12. Hi, I want to know the tax benefits that I can avail. Below are required information.

    1) My EMI started from April 2017 after getting final possession letter on March 2017.
    2) Got my registry done on September 2017. Payment was done my me from my account. Wife is co-owner but EMI are paid by me only.
    3) Got the physical possession on Dec 2017.
    4) Not going to shift in this financial year i.e. 2017-2018. Will stay in my rented house till March 2018 due to personal reason. Can’t take benefit of HRA claim as both my flat and rented flat are near to my office. (within 15 KM).

    Now, how can i and my wife avail tax benefit under 24, 80C and 80EE.

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  14. Gourav Dattalkar

    If my pre-emi started, than i m eligible to get tax benefit through Stamp duty and registration in 80C

  15. i and my friend jointly buy a land for house and paid registration charge Rs 48000 (Year 2016-17). can i show the Rs 24000 in IT Section 80C.

  16. Shipreeta Verma

    Me and my husband are purchasing a house jointly, where I did the initial payment and he is paying the EMIs. However the registration challan has only my name and the amount was paid from my account

    Kindly suggest if I can claim the entire registration amount for deduction. We want this arrangement as he is getting the tax benefits for the House Loan repayment

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