Computation of cost for capital gain
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 February 2013
I have purchased a flat 3 years before.
say at Rs.100/- out of which I had taken Rs.40/- as loan and was paying EMI to the bankers.
Today I want to sell my property, what all components should form part of my Cost
1. Rs. 60/- which I had invested.(This wil be added for sure)
2. Rs.40/- which I had taken loan, and now will repay back to the banker, will that be also added in my cost.
3. Also the EMIs which I had paid to the bankers were more towards Interest as till date my capital outstanding payment is Rs.38/-, so will this interest component which I had already paid will it form part of my cost?
say at Rs.100/- out of which I had taken Rs.40/- as loan and was paying EMI to the bankers.
Today I want to sell my property, what all components should form part of my Cost
1. Rs. 60/- which I had invested.(This wil be added for sure)
2. Rs.40/- which I had taken loan, and now will repay back to the banker, will that be also added in my cost.
3. Also the EMIs which I had paid to the bankers were more towards Interest as till date my capital outstanding payment is Rs.38/-, so will this interest component which I had already paid will it form part of my cost?
24 February 2013
It is clear that 60+40= 100 is your cost.
.
In a recent judgment by the Chennai Tribunal in the case of ACIT v C. Ramabrahmam (2012) 27 taxmann.com 104 (Chennai – Trib.), interest on housing loan which was claimed as a deduction under section 24(b) was also deducted by the assessee under section 48 as cost of acquisition while computing capital gains from sale of such house property. Such treatment was upheld by the Tribunal.
.
So, calculated risk may be taken to treat interest on loans as part of cost of acquisition.
.
.
In a recent judgment by the Chennai Tribunal in the case of ACIT v C. Ramabrahmam (2012) 27 taxmann.com 104 (Chennai – Trib.), interest on housing loan which was claimed as a deduction under section 24(b) was also deducted by the assessee under section 48 as cost of acquisition while computing capital gains from sale of such house property. Such treatment was upheld by the Tribunal.
.
So, calculated risk may be taken to treat interest on loans as part of cost of acquisition.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- CASH GIFT FROM BLOOD RELATIVE
- Query regarding reporting of exempt foreign remuneration in ITR
- ITC BENEFIT ON BROKRAGE PAID
- Sale of Mutual Funds In Diffirent Financial Years
- Itr processing refund
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Error in uploading Form 10BD
- REGARDING ITR FILING QUESTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
