Home loan emi and cost of acquisition

This query is : Resolved

Kapil Khanna (Querist)
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12 August 2012 I have paid a substantial EMI on my home loan for 8 yrs.
Now I plan to sell the residential house.
Cost of Acquisition should include COST OF CAPITAL / EMI (at least some component of it).
How to calculate this component and add it to the cost of acquisition?

Thanks,
Kapil

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 August 2012 Cost of acqusition is the amount paid to acquire the asset + stamp duty + commission/brokerage.

Interest portion in EMI has already been allowed as deduction while computing Income under the head Income from House Property.

Principal portion in EMI has already been allowed as deduction u/s 80C.

Benefit of an expenditure is allowed only once and not twice.

So, NO Portion of EMI will be added to the cost of acquisition.

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