Filing income tax can be a strenuous task. You are to calculate all the income sources, deductions and look for the right claims. If you have recently bought a property and paid a heavy stamp duty, I believe you must be wondering is there any stamp duty exemption in income tax for that? Well, good news is that there is a way to claim stamp duty exemption and I am here to talk about it.
How to claim stamp duty exemption?You will be glad to know that the stamp duty paid in a financial year can be claimed. As per section 80C, if you have purchased a property or constructed a house, you can claim stamp duty, registration charges and other expenses which directly relate to the transfer.
Who is eligible for stamp duty tax exemption in income tax?If you are an individual or belong to HUF (Hindu Undivided Family) then you can claim tax exemption on stamp duty. You can only claim it if you are in the possession of the house or the construction of the property is complete.
What is the limit for stamp duty tax exemption?An individual can claim the maximum deduction amount of up to Rs. 150000. Joint owners can also claim in their respective income taxes but the cap of Rs. 150000 shall remain.
Conditions associated with stamp duty exemption in income taxThe stamp duty must be paid by the assessee only.
House or property should be in the name of the assessee claiming deduction.
Deduction under section 80C is available for a new residential property only
Residential plots or land also do not qualify to file claims under section 80C.
If the property is transferred within a period of 5 years of purchase, the entire amount of deduction allowed is considered as the income of the assessee. Therefore, he/she will be liable to pay tax in the assessment year of transfer of house property.
I hope you have an idea about stamp duty exemption in Income Tax now.
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Authors Of The Question
How to claim stamp duty exemption?
Geet
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3 Year
2021-09-15T12:14:30+00:00 2021-09-16T10:33:24+00:00Comment
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