I had bought a residential flat last year. I would like to know whether the mutation fees that I had paid for registering the property in municipal records is eligible for deduction under Section 80C of the Income Tax Act or not?

Amalendu Chatterjee, Calcutta

Mutation fees, such as stamp duty and title deed registration fees, paid for acquiring residential property is part of the capital cost of the house property and is eligible for deduction under Section 80C of the Income Tax Act.

House rent allowance

I work in Calcutta and receive house rent allowance as part of my salary. But I live in my parents’ house at Gurap, Hooghly. Can I claim exemption for the house rent allowance if I pay the rent to my parents?

Asit Baran Ghosh, Gurap

Yes, you can claim exemption against the house rent allowance subject, however, to the condition that the rent is actually paid. There is no bar on payment of rent to relatives to claim exemption under Section 10(13A). But since you are residing in a residential house in a district town, the least of the following will be exempted: a) amount equal to 40 per cent of your salary;b) house rent allowance received in respect of the period during which the rental accommodation is occupied by you; and c) excess of rent paid (even paid to parents ) over 10 per cent of your salary.

Windfall wonder

When a person is occupying a house whose tenancy is in the name of some other person and he gets a lump sum amount to vacate the property, does it attract capital gains tax? Or, will the amount be considered as a windfall and be considered as income from other sources?

Rajan Prasad, Calcutta

The amount received on relinquishment of tenancy is treated as capital gains. However, since here someone else is occupying the property and has managed a deal for himself to get a lump sum amount in lieu of vacating the property, it is in the nature of a windfall gain and is taxable as income from other sources.

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