Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2014 There is one property(Land) purchased in 87-88 by my grand father only for rs.51000/-. Afterwards he constructed building on it in 91-92. Construction exps were around 15-20 lakhs. But there are no bills or proof for these exps. Since 8-10 years this prop. is in the name of my father and 5 uncle, i.e. in the name of 6 persons. Now in this year all are selling it for rs. 1crore. Everybody is getting different cheques for his share i.e. around 16 lakhs each.
My question is, 1) What steps needs to be taken for claiming Indexed cost of acquisition becoz there is no proof for cost of building 2)To claim exemption u/s 54 can everyone purchase or construct different house prop i.e. 6 different properties? or also can two persons acquire combined property?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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28 November 2014
For 1st Query
In case you don't have any documentation regarding Improvement in building it is advisable for you that please take certificate from valuation person registered under Income Tax Authorities for this purpose.

For 2nd Query
As per section 47 properties received under gift or will not be regarded as transfer as well as per section 2(42A) read with section 49 and section 55 cost of acquisition, including improvement, and period of holding of previous owners will be included while calculating capital gain

Hoping that above advise will help you

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Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2014 Thank you so much.
But for claiming exemption u/s 54 what we need to do?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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28 November 2014 Each Co owner is eligible for claiming exemption under section 54 i.e. the lower of Capital gain or amount invested into purchasing/constructing a new house property

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Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2014 Thank you so much...