Tax exemptions for house registration charges under Sec 80C

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  1. Hariharan10

    Hariharan10 New Member

    I have few queries on tax exemptions provided for house registration charges under Section 80C.
    Could you please clarify the below queries and provide detailed explanation.

    1..I had booked a new flat which is under construction now. What charges paid towards registration are exempted under Section 80C.
    2..Is construction agreement charges paid to the state government for flat registration qualify for tax exemption under Section 80C.
    3.. Does Mortgage deed charges(MoD) paid to the registrar office exempted under Section 80C.

    I went through the Section 80C of IT act 1961-2014 to see if these charges are mentioned there.
    It says "stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee" . Here what charges are classified as other expenses?

    I'm expecting some help from all on this.

    Regards,
    Hariharan.
     
  2. Hariharan10

    Hariharan10 New Member

    Expecting some replies from the experts on this.
     
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. The stamp duty charges are allowed to be claimed under section 80c
    2. Yes, the charges paid to state govt for getting the construction agreement registered would also be allowed to be claimed
    3. Yes, any charge paid in the registrar office is allowed to be claimed as a deduction
     
  4. Hariharan10

    Hariharan10 New Member

    Sir,
    Can these charges be claimed only after the possession of the house or it is irrespective of it? The section 80C doesn't mention that the property must be possessed in order to claim tax exemption as a condition. Does this condition applies only for claiming the loan interest amount and not to the principal amount?
     
  5. gaurav_kumar

    gaurav_kumar Well-Known Member

    The deduction under section 80C can be claimed only after the construction has been completed.
     
  6. Hariharan10

    Hariharan10 New Member

    Sir,
    I don't see that clause being mentioned in the IT act under Section 80C that only after possession of the house principal amount repayment and the registration fees can be claimed?
     
    Last edited: Mar 28, 2015
  7. Hariharan10

    Hariharan10 New Member

    Can someone please clarify on this?
     
  8. V K Khanna

    V K Khanna Active Member

    For re- payment of principal amount towards home loan, registration charges etc, I think requirement of possession of the house for the purpose of claiming rebate under Sec 80C is not necessary. However, if you intend to claim rebate towards repayment of interest on home loan, possession of the house is mandatory.
     
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