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Capital gains on sale of flat

Tax queries 819 views 2 replies

Hi friends,

when we are calculating capital gains on sale of flat do we need to take into account sale value of land and Flat individually as we have to apply cost of indexation on land and depreciation on flat cost

Thank u

Replies (2)

I think it is depends upon the value at the time of purchase.

If you know the separate cost of land and Flat both at the time of purchase, and you have made a payment toward both then, you have to calculate capital gain tax separately.

Ok fine.

Actually flat is a depreciable asset.On depreciable  asset we dont apply cost of inflation index.

But many cases I have seen that they have been applying CII.

Can u pls answer this query.

 

 

 

 

 

 

 

 


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