A silver lining to property costs
Buying a home means big one-time charges on top of the price — mainly stamp duty (a state tax on the transfer) and registration (the fee to record the sale legally). The good news: under the Old Tax Regime, both count inside your 80C basket, the combined ₹1.5 lakh deduction.
Why this matters in rupees
Stamp duty typically runs 5-7% of property value across states (Source: respective State Stamp Acts), and it counts within the ₹1.5 lakh Section 80C cap.
| On a ₹40 lakh flat | Approx amount |
|---|---|
| Stamp duty at ~6% | ₹2,40,000 |
| Registration at ~1% | ₹40,000 |
| Claimable under 80C | Up to ₹1,50,000 (basket cap) |
Even though you paid far more, 80C tops out at ₹1.5 lakh combined with your other 80C items.
The rules
- Limit: clubbed inside the overall ₹1.5 lakh 80C basket.
- Timing: claim only in the financial year you actually paid the charges — no carry-forward.
- Possession: you must have taken possession; an under-construction flat without handover does not qualify yet.
- Lock-in: do not sell the house for 5 years, or the deduction is reversed and added back to your income in the year of sale.
Joint owners
If you and your spouse co-own and paid together, each can claim your share within your own ₹1.5 lakh limit.
How to claim
You do not need a home loan for this — even a cash purchase qualifies. The stamp duty and registration receipts are enough.
What you should do
- Pull out the stamp duty challan and registration receipt from your purchase file.
- Add them to other 80C items, but cap the total at ₹1.5 lakh.
- Claim it in the same year you paid — this benefit cannot wait.
Common mistake
Forgetting it entirely. Because it is a one-time cost buried in property paperwork, most buyers never claim it — especially if their EPF already feels "enough". Check before you assume your basket is full.
How LastMinute ITR helps
LastMinute ITR specifically asks whether you bought a house this year. If you did, it reminds you to add stamp duty to your 80C deductions and checks old vs new regime so you claim it only where it counts. You file and e-verify on incometax.gov.in.