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can you claim stamp duty on investment property
. The stamp duty and registration charges are essential costs incurred when purchasing a property, including investment properties.
While these costs are substantial, the Income Tax Act provides some relief by allowing tax deductions on them, but only under specific conditions.
For individuals purchasing residential property for self-occupation or as an investment, Section 80C of the Income Tax Act allows a deduction on stamp duty and registration fees up to ₹1.5 lakh in a financial year.
This deduction can be claimed only in the year these expenses are incurred. However, this benefit is available only if the property is residential. If the property is a commercial or non-residential investment, these expenses are not eligible for deduction under Section 80C.
It is important to note that stamp duty paid on the purchase of investment property (rental or capital appreciation purposes) can only be claimed under Section 80C if the property is residential.
Even for investment properties, if the intention is to earn rental income or capital gains, you can still claim this deduction provided the property is residential.
For investment properties, the stamp duty cost also forms part of the acquisition cost when computing capital gains at the time of sale. When the property is sold, the stamp duty paid initially will be added to the property’s cost, thus reducing the capital gains tax liability.
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Can You Claim Stamp Duty on Investment Property?
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2024-10-30T14:43:05+00:00 2024-10-30T17:20:07+00:00Comment
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