Cost of improvement - capital gains

Mihir (Wealth Manager) (5293 Points)

16 August 2011  

Cost of improvement, too, is taken in the consideration in order to arrive at the long term capital gain in case of immoveable property. How does one prove the expenses incurred in the immoveable property to avail the benefits? What if there are no bills related to these expenses incurred? What if there are many dates/years in which improvements/enhancements were made to the immoveable property? How does one calculate that?

Thanks, would appreciate the answer with an example.