Capital Gains

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Arun Sharma (Querist)

22 February 2011 Dear Sir
I purchased a flat on 20.03.1996 for Rs.420000/-.I also spent Rs.50700/- as stamp duty at that time.Now i have sold that flat for Rs.2500000/- on 13.12.2010.I have two questions in my mind which are as under:-

1.While calculating the amount of capital gains the amount spent by me on stamp duty will also be added in the value of flat i.e Rs.420000/- or not.
2.If yes then please oblige me by telling the amount of capital gains.
Thanking you.
Arun Sharma
kalia1961@gmail.com

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)

22 February 2011 Hi,

Cost of Acqusition will include the registration charges / stamp duty paid if the same is not claimed as deduction under Sec 80 C

W.R.T your issue you couldnt have claimed Stamp duty Charges as....

B.—Deductions in respect of certain payments

Deduction in respect of life insurance premia, contributions to provident fund, etc.

80C. 94[95-97Omitted by the Finance Act, 1990, w.e.f. 1-4-1991.]

Therefore your LTCG would be

Particulars Amount

S.C 25 lac
(-) Exp. on Tfr -
NSC 25 lac
(-)ICOA
470700*711/281 11.90 lac

LTCG 13.10 lac

Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

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Guest

Guest (Expert)

22 February 2011 Cost of Acqusition will include the stamp duty paid if paid by buyer.

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