| Question And Answer | |
|---|---|
| Subject: | GST and Stamp Duty cost whether allowed in section 54F Deduction, investment in residential house |
| Category: | Income-Tax |
| Querist: | Manish Jain |
| Answered by: | Mr . H. N. Motiwalla |
| Tags: | GST, investment in residential house, s.54F, Section 54F deduction, Stamp Duty |
| Date: | July 28, 2024 |
One assessee has purchase new residential property for section 54F benefit. Whether GST and Stamp Duty Paid on New Flat is allowed as deduction ?
The Madras High Court in C. Aryama Sundaram vs. CIT [407 ITR 1] has observed that:
“The cost of new residential house would necessarily include the cost of land, materials used in the construction, labour and any other cost relatable to the acquisition or construction of the residential house”
Thus GST and Stamp Duty paid for purchase new flat shall be included as cost of purchase.
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Purchased new flat after selling equity shares/euity linked mutual funds, I had put partial amount of net sales consideration of Rs. 4142746 towards flat purchase for Rs.3000000+(Rs.5005036 as stamp duty & registration charges),LTCG is Rs.1537027.Sir please reply at the earliest can I get deduction in Sec 54F along with stampduties/Registration charges of flat ?
You are eligible to claim a full deduction under Section 54F for the LTCG of Rs. 15,37,027, as your total investment in the new flat (Rs. 30,00,000 + Rs. 50,05,036 = Rs. 80,05,036) exceeds the net consideration (Rs. 41,42,746). Stamp duty and registration charges are includible in the cost of the new residential property for claiming the exemption.
Purchased new flat after selling equity shares/euity linked mutual funds, I had put partial amount of net sales consideration of Rs. 4142746 towards flat purchase for Rs.3000000+(Rs.505036 as stamp duty & registration charges),LTCG is Rs.1537027.Sir please reply at the earliest can I get deduction in Sec 54F along with stampduties/Registration charges of flat ?
Sorry Sir, I have corrected my question, may please reply at the earliest as per law
Purchased new flat after selling equity shares/euity linked mutual funds, I had put partial amount of net sales consideration of Rs. 4142746 towards flat purchase for Rs.3000000+(Rs.505036 as stamp duty & registration charges),LTCG is Rs.1537027.Sir please reply at the earliest can I get deduction in Sec 54F along with stampduties/Registration charges of flat ?
Sorry Sir, I have corrected my question, may please reply at the earliest as per law
Yes, you can claim a deduction under Section 54F for the LTCG of ₹15,37,027, including the stamp duty and registration charges (₹5,05,036) as part of the investment in the flat. Based on your investment of ₹35,05,036 out of the net sale consideration of ₹41,42,746, you are eligible for an exemption of approximately ₹13,00,788. The remaining LTCG of ₹2,36,239 will be taxable at 12.5%. To claim the full exemption, deposit the unutilized amount (₹6,37,710) in a Capital Gains Account Scheme before the ITR filing deadline.
We Purchased new flat at cost Rs.60lakhs after selling equity shares/euity based mutual funds,we put partial amount of net sales consideration both each with my wife as co-owner towards flat purchase for Rs.30lakhs each individually,LTCG obtained by each idividually.Sir please reply at the earliest, can we get deduction in Sec 54F along with stampduties/Registration/brokerage charges of flat by each individually ?
I may add here that since I only paid stampduties/Registration/brokerage charges on whole cost of 60 lakhs, can I get rebate to get deduction in Sec 54F as per act, may please reply at the earliest as per law
Thanks