Tax Exemption: Under Section 80C.. Rs. You can get tax exemption up to 1.5 lakh.. Do you know how?
For property registration under Section 80C Rs. 1.5 lakh tax exemption available. Know about the related details.
Property is a popular means of investment in India. Property prices increase significantly every year. That is why many people buy a house, shop, or plot. As per the provisions of the Income Tax Act, 1960, you are also entitled to tax exemption on stamp duty or registration fee paid for registration of property. Under Section 80C of the Income Tax Act, on payment of stamp duty, registration fee, etc. a maximum of Rs. 1.5 lakhs will be deducted.
Individuals paying stamp duty and registration charges under Section 80C can claim exemption while filing an Income Tax Return (ITR). Under Section 80C (xviii)(d) of the indian Income Tax Act, 1961, the benefit of a tax deduction on expenses incurred on the purchase or transfer of property such as stamp duty and registration fee is available only for residential properties and not for commercial properties. So, if you want to get an exemption up to Rs 1.5 lakh, you need to buy a residential property.
Exemption on stamp duty can be claimed by sole proprietors, co-proprietors, or Hindu undivided families. In joint ownership, co-owners are exempted according to their share. For this, it is mandatory to register the property in the name of all the owners and pay stamp duty. If stamp duty is paid by someone other than the co-owner of the property, the co-owners of the property will not get the benefit of tax exemption.
Deduction of stamp duty can be claimed in the same financial year in which the ITR is filed. This means, that while filing ITR for FY 2023-24, you can claim exemption only on the stop duty paid in this financial year and not for the house purchased in the previous financial year. You can claim an exemption on stamp duty payable only on residential properties owned by you as the first owner.
That is, you must own the property. Properties under construction are not eligible for stamp duty benefits. A stamp duty-exempt property cannot be sold for five years. If anyone sells the property before this deadline, the ITR of the exempted year will be revised and stamp duty will be deducted.
To get tax exemption on stamp duty, the maximum exemption limit under section 80C is Rs. It is also important that you do not exceed 1.5 lakhs. That means you have already invested in EPF, PPF, SCSS, Life Insurance Policy, ELSS, etc. 1.5 lakhs exemption cannot be claimed on stamp duty. Even after claiming an exemption on these investment options, you will have Rs. If the deduction is less than 1.5 lakhs, you are entitled to tax exemption on stamp duty as well.
