Capital gain
This query is : Resolved
Naveen Swami
(Querist)
30 December 2011
When house is purchased for Rs. 50,000 on 1.1.1975 & cost of improvement is Rs. 10,000 on 1.1.1977. Fair Market Value on 1.4.1981 is Rs. 40,000.
Then Please Tell me
1. While comparing cost of purchase with fair market value cost of improvement will be added or ignored.
2. Suppose actual cost is more than fair market value whether cost of improvement will be added or ignored for calculating capital gain
Then Please Tell me
1. While comparing cost of purchase with fair market value cost of improvement will be added or ignored.
2. Suppose actual cost is more than fair market value whether cost of improvement will be added or ignored for calculating capital gain
s v rajesh
(Expert)
30 December 2011
Hi,
If your amount paid is more than the fair market value of 1.4.81 you can take the actual cost i.e Rs.50,000.
Cost of improvement can be taken if its after 1.4.81.
So in your case you can't claim cost of improvement.
If your amount paid is more than the fair market value of 1.4.81 you can take the actual cost i.e Rs.50,000.
Cost of improvement can be taken if its after 1.4.81.
So in your case you can't claim cost of improvement.
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