Is stamp duty tax deductible?

Hey buddy,

If you have bought or built a home, then you should definitely know about the provisions of stamp duty exemption in income tax. I am going to explain that in simple terms.

Registration charges, stamp duty, and other expenses that are directly related to the transfer are allowed as a deduction under Section 80C. The max. amount of deduction allowed under this section is Rs.1.5L.

You can only claim this deduction in the year you make the actual payment towards these expenses. In case you purchase the house on 29th July 2017 and pay its registration charges and stamp duty, then these expenses can be claimed under section 80C only in Financial Year 2017-18. This deduction can be claimed income tax return by both a Hindu Undivided Family and an individual.

The cost of renovation, addition, alteration, that is incurred after obtaining the completion certificate, or after the home has been occupied by the let-out or buyer.

Cost of share, admission fees, and the initial deposit which a cooperative society’s member or company’s shareholder is required to pay to become a member or shareholder.

I hope now you answer to questions like “is stamp duty tax deductible” and “can we claim stamp duty and registration fees in 80C”

You might find these answers helpful as well:

This is all you need to know about the stamp duty exemption in income tax.

Hi there,

Paying tax can be a hefty job. First of all, you need to calculate the amount you need to pay and then you have to figure out how to get a tax exemption. Well, while purchasing a property we need to pay stamp duty amount which is often a lot! My mother purchased a property and when she was filing tax she had no idea about stamp duty in tax exemption. She was about to file her taxes and pay a huge amount when I read that we can claim stamp duty in income tax. After doing a little bit of research about can we claim stamp duty in income tax, I got to know it all!

As per Section 80C you can claim income tax exemption on stamp duty. This is one of my favourite Section, since this section helps a claim tax for investment made in PPF, LIC premium, EPF, Equity-linked saving scheme, registration charges and stamp duty.

As mentioned by Nishant, if you are an individual, or belong to Hindu Undivided Family you can easily claim tax on the stamp duty you have paid. You can claim this tax in the same year you have paid your stamp duty. You can get a maximum of Rs.1,50,000 tax exemption for stamp duty. 

After learning about this I was able to help my mother save on her taxes and I also learnt how can I save my own tax. One thing we should remember is that LLPs, partnership firms, and companies cannot claim tax exemption for stamp duty under Section 80C.

This is all I need to say about 'can we claim stamp duty in income tax'. I hope this helped you!

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