DYK: Stamp duty paid to register residential belongings qualifies for tax deduction

You could avail various earnings tax deductions, allowed below multiple sections, to store on taxes, aside from investments, some expenses to qualify for these deductions. One such deductible is a charge of stamp obligation and registration price even as registering a residential belonging.

stampduty2-k1wb-621x414livemint

Stamp responsibility and the registration price?

Stamp responsibility is a kingdom levy paid to sign in a report, whereas a registration fee might be considered a processing charge. Usually, these are a percent of the property’s price, and their costs vary across states. Stamp responsibility and registration charges are charged on the transaction fee or circle fee (minimum price of belongings, for assessment purposes), whichever is better. Stamp duty may also range relying on the proprietor’s intercourse. For example, in Delhi, ladies pay 4% stamp obligation compared to 6% for guys. Registration charge is equal for each in Delhi, i.E., 1% of the assets’ value. However, in the case of joint possession, wherein the belongings are offered together within the call of a person and a female, stamp responsibility is 5% in Delhi.

In some states, the stamp duty relies upon the vicinity wherein the sale deed is carried out. For example, in Haryana, a person must pay eight% stamp obligation in city regions and 6% in rural areas, even as a woman has to pay 6% and four%, respectively.

Tax benefit

Stamp responsibility and registration rate qualify as deductibles underneath segment 80C of the earnings-tax Act, 1961, as much as a restrict of Rs1.5 lakh.

Do remember, but you could declare this deduction best if the development of the assets has been entirely and you’ve legal possession of the house.

Also, make sure you buy the stamp papers in your name and not in someone else’s name.

Claim deduction at the same time as submitting your earnings tax returns to the relevant year, i.E., the yr wherein the stamp duty and registration fee are paid.

Explorer. Beer trailblazer. Zombie expert. Internet lover. Unapologetic introvert. Alcohol fanatic. Tv ninja.Once had a dream of buying and selling sauerkraut in Ohio. Practiced in the art of building crickets in Nigeria. Gifted in donating wooden tops in Fort Walton Beach, FL. Spent 2001-2007 testing the market for corncob pipes for no pay. A real dynamo when it comes to managing catfish in Jacksonville, FL. Spent a year investing in yard waste for farmers.

Forgot Password