Capital gain - cost of acquisition of construction of buildi
This query is : Open
CA Mayur Gundeti
(Querist)
26 July 2011
Dear Sir
case is:
Assessee purchased one floor of a building in fy 1997-98. In fy 2005-06 he gave consent to demolish and construct a new building. He paid Rs.8lacs to a contractor.Contractor demolished the complete building and constructed 5 flats and gave assessee 2 flats.
Now assessee sold those two flats in fy 2007-08. What will be cost of acquisition for computing capital gains ?
Thank you
case is:
Assessee purchased one floor of a building in fy 1997-98. In fy 2005-06 he gave consent to demolish and construct a new building. He paid Rs.8lacs to a contractor.Contractor demolished the complete building and constructed 5 flats and gave assessee 2 flats.
Now assessee sold those two flats in fy 2007-08. What will be cost of acquisition for computing capital gains ?
Thank you
CA Anisha Ray
(Expert)
27 July 2011
Assuming that the assessee did not get any cash benefit when the consent was given:
Cost of Acquisition should be the Price that he paid for the acquisition in 97-98.
The 8 lacs paid in 2005-06 could be shown as cost of improvement. Indexation benefit to be taken for the both the above.
Cost of Acquisition should be the Price that he paid for the acquisition in 97-98.
The 8 lacs paid in 2005-06 could be shown as cost of improvement. Indexation benefit to be taken for the both the above.
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CA Mayur Gundeti
(Querist)
27 July 2011
sir can you provide any case law for the same.
Thanks
Thanks
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