Stamp duty paid can be claimed up to a maximum of Rs 1.5 lakh under Section 80 C

The maximum deduction amount allowed under this section is capped at `1,50,000.

Written by Guest

August 6, 2019 03:20 IST

Section 80C Deduction, Best investment options under Section 80C, section 80c limit, PPF

Stamp duty and registration charges and other expenses which are directly related to the transfer are allowed as a deduction from the gross total income under Section 80C.

By Chirag Nangia

– I bought an apartment in November last year for `1crore. I am the first owner and second owner is my sister. My queries are: (A) Stamp duty and registration charges were paid by me from my account but since my sister is co-owner, can she too claim stamp duty exemption of `1,50,000?
(B) How to claim stamp duty exemption of `1,50,000 ? Which column should be fulfilled exactly?
–Shubhra Verma
Stamp duty and registration charges and other expenses which are directly related to the transfer are allowed as a deduction from the gross total income under Section 80C. The maximum deduction amount allowed under this section is capped at `1,50,000. This deduction can only be claimed in the year the actual payment is made towards these expenses. If a property is purchased jointly, the co-owners can claim these expenses in proportion of their share in the property. However, the maximum limit of `1,50,000 shall apply in each case. Hence, both you and your sister can claim deduction in respect of the amount of stamp duty and registration charges paid, in proportion to your respective shares. This deduction shall be allowed from your gross total income and can be claimed in “Schedule VI A” of the Income Tax Return Form under the head 80C.

– I have worked in two organisations. When I left the first organisation in April they sent me an extra salary for April and then I had to return that salary and joining bonus. Now the issue is where should I mention this while filling ITR?
—Himanshu Gupta
As per the Income Tax Act, salary includes ‘bonus’ by whatever name called. Assuming that you received the joining bonus in an year earlier to the last year, the same must have been charged to tax in the year in which it was received. Returning of the joining bonus will not give you any deduction from gross total income in the year it is returned. However, if the joining bonus was also received in the same year in which it is being returned, the same can be excluded from salary. The extra salary that you received in April, will be excluded while computing income under the head salary. You shall only have to disclose and offer for tax the amount of salary actually received during the year.

(The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonalfinance@expressindia.com)

This article was first uploaded on August six, twenty nineteen, at twenty minutes past three in the night.