I have recently bought a residential house for which I incurred Rs 1.70 lakh towards registration fees and stamp duty. Can I claim the same? If yes under which section of the Income-tax Act, 1961 and up to what limit can I claim them?
An individual and a Hindu Undivided Family (HUF) are allowed deduction under Section 80C of the Income-tax Act, 1961 for repayment of the principal amount of home loan for residential house purchased with loan from banks. This section also covers payments made in respect of stamp duty and registration charges paid in respect of such property within the overall limit of Rs 1.50 lakh. You will get a deduction of Rs. 1.50 lakh under Section 80C in respect of stamp duty and registration together with other eligible items provided you opt for the old tax regime.
My sister owns three residential properties out of which she sold one in the current year and invested the profit earned for buying another residential property within two months of the date of sale. Will she have to pay any tax on the profits made?
The answer to your question depends on the period for which the property sold was held by her. In case she held this residential house for 24 months or more, she does not have to pay any capital gains tax as she has already invested the capital gains in another residential property within two months.
If the property was held for less than two years, there is no tax exemption available. The profits will be treated as short-term capital gains (STCG) and taxed at the slab rate.
My son is pursuing his graduation from the University of Houston, Texas, the US. I obtained a personal loan for paying his tuition fee since banks denied him an education loan. Can I claim any tax benefits for the amount paid by me?
There are two provisions under income tax laws where benefits in respect of child education can be claimed under the old tax regime. The first benefit available is under Section 80C for tuition fee paid for full time education in university or school in India. The second benefit is available under Section 80E in respect of the interest on education loan taken for the higher education for certain specified relatives, including children, from either any recognised charitable institution or from bank/financial institution for study anywhere.
Since your child is studying outside India, you cannot avail of the benefits under Section 80C and as you have not taken education loan from either a charitable institution or bank/financial institution in India, so deduction under Section 80E is also not available to you.
The author is a tax and investment expert and can be reached on jainbalwant@gmail.com
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