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Cost of acquisition for capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2014 I am buying an under construction property from the original allotee at a premium in cheque say total value Rs. 1200000. Thereafter transfer will be endorsed in the allotment letterI will step into the shoes of the original allotee. However at the time of registry the builder will get the registry done at the value that was paid by the original allottee that is 900000.So my question is that when I sell this property what will be taken as my cost of acquisition 1200000 or 900000. Kindly back this by any case law available.

Nikhil Kaushik

Nikhil Kaushik (Expert)

09 October 2014 since you paid the whole value in cheque, you will be able to show cost of acquisition as Rs 1200000. the difference between registry value and amount paid reflects the premium you paid and includible in cost.

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