You can avail of numerous profits tax deductions, allowed below various sections, stored on taxes; aside from investments, a few charges qualify for those deductions. One such deductible is the price of stamp duty and registration rate while registering a residential belonging.
Stamp responsibility and the registration price?
Stamp obligation is a national levy paid to check in a file, whereas a registration fee may be considered a processing rate. Generally, these are a percent of the property’s value, and their charges range across states. Stamp responsibility and registration fee are charged on the transaction cost or circle fee (minimum charge of belongings, for evaluation purposes), whichever is higher. Stamp duty can also vary depending on the proprietor’s intercourse. For example, girls pay four% stamp obligations in Delhi compared to 6% for men. Registration rate is identical for each in Delhi, i.e., 1% of the assets’ cost. But, in the case of joint possession, in which the assets are bought jointly in the call of a person and a woman, stamp duty is 5% in Delhi.
Tax advantage
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Stamp duty and registration rate qualify as deductibles below segment 80C of the profits-tax Act, 1961, as much as a restriction of Rs1.five lakh. Do keep in mind that You may claim this deduction best if the construction of the assets has been whole and you’ve criminal possession of the residence. Also, ensure you buy the stamp papers for your call and not for anyone else’s call. Claim deduction at the same time as submitting your profits tax return of the relevant 12 months, i.e., the 12 months wherein the stamp duty and registration rate are paid.
