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SAGAR   17 March 2024

Taxation - under construction property

I have bought an under-construction property in this FY as joint ownership with my family members for personal use. However there are certain queries and issues that I have observed. I have tried providing as much information as possible. Kindly assist me and let me know for any further information.

1. Under-construction property : joint ownership (3 members) - stamp duty & registration amount paid in part in this FY for registration of sale agreement.

Is that amount tax deductible under 80C in the current FY even though property will be completed (i.e. will receive CC) in next FY?

If tax deductible in this year or the next year, can the required amount be divided as part of proportion of the share, of joint property? Proportion of share has not been explicitly mentioned in the sale agreement, but the individuals are paying separately as part of the share, from their own bank account and similarly paying separate TDS amount.

Kindly note that, the query that was generated (by developer online) for paying stamp duty and registration amount in part, only contained name of the first joint borrower and not the other 2 names. They told that it can be generated for one member only. So can all 3 separately claim their portion of amount, in 80C?

2. Is Principal of home loan tax deductible for current FY for under construction property? I am aware that the interest portion is not, for under-construction.

The first joint borrower is paying the EMI and the loan is under its name. Can only it or the others claim the same equally?

3. Under construction property final value will be adjusted (lowered) after findings (discussion with seller). We have not yet signed the rectified agreement. My question is how do we adjust the value in 26QB?

4. Stamp duty and registration (as mentioned in 1st point) has already paid on the  previous consideration amount (which is wrong and higher than the corrected amount). How will the value change impact it? Would we pay less amount of it's remaining portion, during sale deed registration?


 1 Replies

T. Kalaiselvan, Advocate (Advocate)     18 March 2024

This is a subject to be dealt with by a chartered accountant or an auditor.;

You may consult one in the nearest vicinity and get all your doubts clarified 

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