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CAPITAL GAIN CASE STUDY

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)

27 July 2010

CASE STUDY OF CAPITAL GAIN.

ONE OF MY CLIENT PURCHASE HOUSE IN INSTALMENT FROM DDA . NOW HE WANT TO SALE THE HOUSE

SO ,PLS TELL ME IN THIS CASE HOW I DO THE INDEXATION OF COST OF PURCHASE.

PLS WRITE WHICH DATE SHOULD BE CONSIDERED FOR THIS INDEXATION.

ALSO GIVE ME THE CASE IN THIS MATTER OF ANY COURT. OR ANY REFERENCE.

REGARDS

SUDHIR CHAUHAN

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10 Replies

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 27 July 2010

dear friend

according to me its the cost on the date of acquisition.because as per section 48 the date of acquisition is considered for computation of capital gain.

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 27 July 2010

DEAR SIR

I M ASKING ABOUT WHICH DATE SHOULD BE CONSIDERED

ALSO SHOULD INTEREST AMOUNT SHOULD BE CAPITALISED IN ACQUISITION AMOUNT OR NOT

PLS REPLY SIR

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 27 July 2010

dear friend

the date of acquisition is considered for indexation purpose. and yes dear interest will form part of cost of acquisition.

Harpreet (* * * * * *) (1670 Points)
Replied 27 July 2010

date of acquisition is the date on which u have purhcase the house.

Atul Gupta (Ca final Article) (39 Points)
Replied 27 July 2010

Date of Purchase of house property is considered as Date of acquisition and interest is also forming as Part of cost.

All expenses which are related to acquire the capital asset form as the part of cost.

CA Namrata ghosh (CA) (55 Points)
Replied 27 July 2010

You should consider that financial year in which the property is transferred to your client by ADDA-that should be your date of acquision of land for indexation purpose. And interest paid on this amount forms part of cost of acquision ,hence it should be capitalised.

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