House property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 Hi Frinds, can anybody solve this query.?

An asseessee has constructed a house property for Rs.25 lakhs. along with this he spent Rs.10 lakhs for interior works like wood works, Furnitures attached to Walls.can he claim these expenses as a cost of Improvements to House Property while selling such House Property. is there any relevant case law for this? Pls help in this as soon as possible.

Amol S Joglekar

Amol S Joglekar (Expert)
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02 August 2012 One needs not have any case l;aw for this. Any furniture which is embedded in the wall will add on the cost of the property. The non attached or removable furniture is not a capital asset so you need not worry about the same. The crux is what you SELL as per the agreement / conveyance deed.

aadish

aadish (Expert)
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02 August 2012 COST OF IMPROVEMENT IS A CAPITAL EXPENDITURE INCURRED BY AN ASSESSEE IN MAKING ANY ADDITIONS/ IMPROVEMENT TO THE CAPITAL ASSET. SO BENEFIT , SO WHERE THE ASSET IMPROVED OR VALUE INCREASED OF THE ASSET CAN BE CLAIMED, SO FURNITURE ADD TO THE WALL CAN BE CLAIMED AS COST OF IMPROVEMRNT CZ BY INCURRING THAT EXPENDITURE, VALUE OF THAT HOUSE INCREASES.SO ANY EXPENDITURE WHICH INCRASES THE VALUE CAN BE SAID COST OF IMPROVEMENT, SO IN YOUR CASE RS. 10 LACS CAN BE CLAIMED.CASE LAW I DONT KNOW.
HOPE YOUR QUERY IS RESOLVED.

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 Thanks friends

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