Tax Query: Can I claim tax deduction on stamp duty for purchasing a flat?

I had purchased a flat in January 2020 for Rs 60 lakh.  I paid stamp duty and registration charges while registering the flat. Can I claim a tax deduction for the expenses incurred and up to what amount? 

You can claim a tax deduction of the stamp duty and registration charges incurred on the purchase of your flat. All expenses incurred to transfer a house property or flat are allowable as a deduction while calculating your taxable income for FY 2019-20. You can claim the deduction under section 80C which has an upper limit of Rs 1.5 lakh. 

Do note that section 80C also allows a tax deduction on your tax-saving investments and other expenses. The limit for deduction of Rs 1.5 lakh is inclusive of all investments and costs incurred which are eligible for deduction under section 80C.

Also Read: Tax Query: Can I continue with my LIC policy under the new tax regime?

I incurred expenses on preventive health check-up of myself and my parents, who are senior citizens. The expenditure is in addition to the medical insurance I pay under a floater policy. What is the maximum amount I can claim as a tax deduction? 

You can claim a tax deduction for the expenses incurred on preventive health check-up for yourself and your parents. The maximum deduction for the aggregate amount spent is Rs 5,000. You can claim the deduction for preventive health check-up whether or not you stand covered under a medical insurance policy. However, in case you already have a medical insurance policy coverage, the deduction for preventive health check-up is part of the overall deduction. 

The overall limit for the tax deduction is Rs 25,000 for yourself and Rs 50,000 for your parents. In your case, the total eligibility limit is Rs 75,000 for the medical insurance premium and preventive health check-up, as shown below:

  1. Rs 70,000 for the medical insurance premium payment
  2. Rs 5,000 for the preventive health check-up

Do note that the above limit refers to the maximum deduction. In case your actual expenditure or premium is lower, your tax deduction stands restricted to the amount paid by you.

For any clarifications/feedback on the topic, please contact the writer at sweta.dugar@cleartax.in

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