Stamp duty, registration fee paid on house purchase eligible for tax relief

Written by Suresh Surana | Updated: Jan 28 2014, 16:13pm hrs
I paid stamp duty and registration fee of Rs 1.5 lakh for the purchase of a residential property in Mumbai. Is the amount eligible for deduction, along with the actual cost of the house

Sudesh Bapte

Under Section 80C of the I-T Act, an individual/HUF assessee is eligible to a deduction of stamp duty, registration fee and other expenses for the purpose of acquiring a house. The maximum limit of deduction under Section 80C every financial year is Rs 1 lakh.

I own a house from which I derive an income of Rs 3.8 lakh per year. I wish to convert it into a property of an HUF of which I am a member. What will be the tax implication

Dhuvnesh Kedia

As per Section 64 (2), where an individual, who is a member of the HUF, converts his separate property into a property of an HUF, or throws the property into the common stock of the family, or transfers his individual property to the family, otherwise than for adequate consideration, the income from such property shall continue to be included in the total income of the individual. In your case, although the income shall henceforth be received by the HUF, it will be deemed to be income in your hand and included in computation of your total income under the head income from house property.

I earned capital gains on sale of some jewellery that I bought four years ago. What are the tax implications

Sahil Singh

In your case, reinvestment benefit available under Section 54EC of the I-T Act is relevant. Under Section 54EC, any long-term capital gain on sale of any capital asset will be exempt if it is invested within a period of six months from the date of transfer in specified bonds issued by the National Highways Authority of India (NHAI) or Rural Electrification Corporation (REC), redeemable after three years. The investment made in such bonds during the financial year should not exceed Rs 50 lakh.

Further, the taxpayer should not transfer or avail of loan on the security of the above bonds within a period of three years from the date of its acquisition; otherwise, the capital gain exempted earlier becomes taxable.

I am a salaried employee with an annual income of Rs 12 lakh. I have not yet filed the return of income for assessment year 2013-14. Can I file it now

Shobhit Kumar

Yes, you can. As per Section 139(4), if an assessee has not submitted his return of income on or before the due date mentioned under Section 139(1) (i.e., July 31, 2013) he can still file it before the expiry of one year from the end of the relevant assessment year (i.e., March 31, 2015) or before the completion of the assessment, whichever is earlier. Therefore, in your case you have time to file your return till March 31, 2015. However, a penalty of Rs 5,000 may be levied under Section 271F if the return is filed on or after April 1, 2014.

In FY13, I earned Rs 2.5 lakh for writing assignments with magazines. Am I entitled to a maximum deduction of Rs 3 lakh under the I-T Act in respect of such income

Prashant Kumar

Under Section 80QQB, a deduction of actual royalty earned, subject to maximum Rs 3 lakh is available to the author of a book against such royalty/copyright fees subject to fulfillment of certain specified conditions.

The term book, however, does not include brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, school text-books, tracts and such similar publications. Hence, you are not entitled to the deduction. However, actual expenses incurred for earning such an income are allowed under chapter IV of the Act.

The writer is founder of RSM Astute Consulting Group

Send your queries at