An Assessee buys nearly six grounds of plot and constructs a residential house at one ground / plot. whether he can claim the capital gain on the cost of entire six grounds & cost of construction or one ground cost & cost of construction. please clarrify these points
18 January 2011
CG attracts when the Capital Asset is Xferred. So, in ur case, he can calculate CG on the Asset sold.
If he sells only part of plot + house - he can consider only such xferred property. Or, if he sells all plots + house, then entire propert so xferre will eligible & fall under CG calculation.
Further, Calculation of CG depends on its nature. i.e Long term or Short term.
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