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Cost of acquition plz hellp its urgent...................

murari (Ca) (162 Points)

02 December 2011

profestional Exp (Lawers fee Drafting For sale & purchase Deed )Incured at the time of Purchasing of property..
are included for cost of acquition or not
if Included then We apply indexation or not
plz do needfull
Its Urgent

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5 Replies

CA AMANPREET SINGH (Chartered Accountant) (284 Points)
Replied 02 December 2011

of course it will be included in COA as it is directly related to aquisition.

and definately indexation will apply..

1 Like

Nadeer Ali T K (Accountant) (28 Points)
Replied 02 December 2011

Definitely . Drafting deed directly form part of cost of asset or cost of acquisition. Hence indexation will apply to the amount including drafting cost.

1 Like

murari (Ca) (162 Points)
Replied 03 December 2011

thanx for ur rply........

but law is silent regarding this

can u plz provide relevent section as per IT Act ... or a decided case in this regard.

CA SOHAM SHUKLA (Nil) (157 Points)
Replied 03 December 2011

1) Yes. CoA includes every exp that is incurred directly to bring the asset to the present location & condition.

2) Indexation benifit will also be avilable.

1 Like

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 04 December 2011

Originally posted by : SOHAM H. SHUKLA
	1) Yes. CoA includes every exp that is incurred directly to bring the asset to the present location & condition. 2) Indexation benifit will also be avilable.