Tax Deduction Benefits on Stamp Duty and Registration Charges
I have bought an under construction flat in September 2005. I paid stamp duty and registration charges at that time (i.e. during the year ended on March 31, 2006). The property will be ready for occupation in December 2006 (i.e. in the year ended on March 31, 2007). Will I be able to get a tax deduction in respect of the stamp duty and registration charges paid in the financial year ended March 31, 2006 even though the property will be ready for occupation only in the financial year ending on March 31, 2007?
No deduction is available for stamp duty/registration charges paid in a financial year in which the construction of the property is not completed. The deduction in respect of these payments is lost permanently.