ITR
Claiming home loan principal and stamp duty
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Facts
Under the old regime, home loan principal and stamp duty and registration charges paid in the year qualify under Sec 80C, within the ₹1,50,000 limit. They are not part of house property deductions. The new regime does not allow them.
Provisions and law
- Sec 80C (now Sec 123)Deduction up to ₹1,50,000 including home loan principal and stamp duty, under the old regime
- Sec 115BAC (now Sec 202)New regime is the default; business filers opt out with Form 10-IEA by the Sec 139(1) due date
Analysis
If principal repaid was ₹90,000 and stamp duty was ₹2,00,000 in the year of purchase, the combined ₹2,90,000 is capped at ₹1,50,000 along with your PF, insurance and other Sec 80C items. If the house is sold within 5 years, the principal deduction claimed is reversed. Under the new regime, none of this is allowed.
Conclusion
- Get principal amount from the loan certificate.
- Add stamp duty and registration paid in the year.
- Combine with other Sec 80C items up to ₹1,50,000.
- Claim only under the old regime.
A Savvy can do this for you
Return with rent from two or more properties and home loan interest, Sec 24(b)
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