Capital gain on sale of land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2012 Can Non construction charges paid be added to the cost of acquisition or in any other manner be used to reduce capital gain

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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27 December 2012 All charges which are incurred to the purchases of asset(i.e land) shall be added to cost of acquisition as well as all charges which are incurred to the sale of asset(i.e land for your case) shall be deducted from sale consideration. As well as if any development charges incurred at the time of purchase or after some time of purchase or before to sale also consider as charges and shall be deduct from sale consideration to decide and compute capital gain.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2012 My Question is that in case of land if any no n construction charges have been paid - that is- the assessee was supposed to construct within a stipulated time as per the contract however he did not do any construction and had to pay non construction charges can these charges be added to cost of acquistion or cost of improvement or in any other manner be used to reduce the capital gain when the land is sold?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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27 December 2012 Such charges not related to acquaistion or sale of land. So that charges are not add for the purpose of minimising of Capital gain. These charges is other expenditure for the payer and Other income to the Receiver.

OM SAI SRI SAI JAI JAI SAI

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