18 August 2010
A person sold two floors of his three floor house to a builder and the builder demolish the house and rebuild all floors with new look and charged nothing for construction. Whether construction cost is part of the sale consideration?
19 August 2010
(i) if the amount of the capital gain is greater than the, cost of the residential house so purchased or constructed , the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; or
(ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45; The construction cost should be the cost of the new assets.Keeping this open for further opinion.
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