The final date to file ITR is July 31.
The advantage of tax exemption on bills incurred on the acquisition or switch of property like stamp responsibility and registration charges might be availed solely on residential property.
The deadline for submitting the Income Tax Return ( ITR) for the Financial Year 2023-24 is July 31. Failure to submit submit ITR earlier than the final date will lead to late charges. While submitting tax returns, the citizen should concentrate on the deductions that are provided below part 80C of the Income Tax Act. It permits sure investments and bills to be tax-exempted.
Investing in actual property is one type of availing the deductions below this act. As per the provisions of the Income Tax Act, the taxpayers are entitled to tax exemption on the stamp responsibility or registration charge paid for registration of property. Under Section 80C of the Income Tax Act, a most deduction of Rs 1.5 lakh might be availed on fee of stamp responsibility, registration charge and so on.
The advantage of tax exemption on bills incurred on the acquisition or switch of property like stamp responsibility and registration charges might be availed solely on residential property and never on industrial property. Hence, you may avail of a deduction provided that you purchase or personal a residential property within the ongoing monetary 12 months of ITR. Under-construction properties usually are not eligible for stamp responsibility tax advantages.
The tax exemption on stamp responsibility might be claimed by particular person homeowners, co-homeowners or undivided households. In the case of joint possession, the exemption is given to the co-homeowners based on their share. However, to obtain the good thing about the identical, the property should be registered within the identify of all of the homeowners adopted by the fee of stamp responsibility. It must also be famous you could declare exemption solely on the stamp responsibility paid within the ongoing monetary 12 months for which the ITR is being filed. It is not going to be out there for the home bought within the earlier monetary 12 months.
The property for the acquisition for which tax exemption on stamp responsibility has been availed, can’t be offered for 5 years. If somebody sells the property earlier than this era, the ITR of the 12 months for which the exemption was availed will get revised and the stamp responsibility deducted can be taxed.
The taxpayer must also watch out of the utmost restrict of deduction below part 80C of the Income Tax Act. You should not have crossed the deduction restrict earlier than availing of the tax exemption for Stamp Duty. Meaning: If you may have already availed of the exemption as much as Rs 1.5 lakh on investments in EPF, PPF, SCSS, Life Insurance Policy, ELSS and so on, you then can’t declare tax exemption on stamp responsibility.
