Answer to this question is a big ‘YES’. According to Section 80C of Income Tax Act 1961, stamp duties and registration charges are eligible for a tax deduction. Maximum tax deduction limit for this criteria is Rs 1,50,000.
Things to keep in mind while applying for these tax benefits –
- Tax benefits can only be availed in the year actual payment is made towards these expenses.
- Construction of the property is complete, and you are the legal owner of the property.
- Tax benefits can only be availed on new residential properties. Therefore, commercial property, residential plots and related property are not eligible for these tax deductions.
- Tax deduction for co-owners in joint ownership is based on their share in the property. However, maximum deduction limit remains the same, i.e. Rs 1,50,000.
Buying a property is one of the most significant financial decisions for anyone. However, not having any legal evidence for ownership of the property makes it vulnerable. Stamp papers are the solution to this problem.