I am buying a house at lower than the government rate. I have to pay income tax on the difference as “Income from other sources”. Can I add stamp duty, registration charges and brokerage that I pay so that cost of acquisition goes up and taxable amount reduces
How will this help.
The IT department has all the information of the deed being registered. They can check what purchase price was paid and what was the stamp duty value.
Also you don't have to provide calculation of income under income from other sources you just have to declare it as income from other sources so i don't think this will help.
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Thank you.
No, you cannot add these amount in cost of acquisition. It will be compared with cost of flat.
Hi
No it will not be added to your cost of acquisition.
Dear Sir,
Hope you are doing well !!
No, you cannot treat the same as cost of acquisition.
Hi, There is no provision in Income Tax to add Stamp duty, registration and brokerage while calculating cost of acquisition hence you will have to purely go by the difference between government value and the registration value. There are two exceptions to this rule extract of which is given below:
(x) where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017,—
(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;
(b) any immovable property,—
(A) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;
(B) for a consideration, the stamp duty value of such property as exceeds such consideration, if the amount of such excess is more than the higher of the following amounts, namely:—
(i) the amount of fifty thousand rupees; and
(ii) the amount equal to 13[five] per cent of the consideration
Regards,
Yash Shah
Hello,
No, you cannot consider these amounts as the cost of acquisition.
I hope this answer satisfies your requirements.
CA Hunny Badlani
Yes stamp duty & brokerage can be added
- It is the stamp duty value which is scrutinised.Stamp duty, registration charges and brokerage is over and above the stamp duty value. The maximum difference between the stamp duty value and actual cost should not be more than 10%.
Yes, all such charges will be included in the cost of aquisition.
