Income tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2018 I would like to clarify the following doubt

What will be Purchase cost in the following situations?

Mr.A was allotted the Land around 5000 Sq ft by TNHB in 1980 & the Sale Agreement excuted in 1985 After that he has construct some area.Then demolish the same in 2000 & settled the land to his 3 sons in 2003 .After that they have got approval for G+2 & construct around 3000 Sq ft .
Then they have sold the Entire Land & building in 2017 & share the proceeds equally.
Now what will be the Purchase cost to each vendor/Seller?

Whether advance Tax is must for LTCG ?

Is it possible to adjust the Mortgage Loan which was taken to contruct the Building from Sale Proceeds?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 March 2018 1. you need to obtain valuation report for value of land as at 1 April 2001

2. Cost of construction will be actual cost incurred in 2003.

3. no benefit available for adjusting mortgage loan

4. yes, advance tax is payable over remaining instalments.

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2018 Whether the Construction cost incurred by Mr.A on various date before settlement to his son can be claimed by his son cost of improvement?
i.e.(Constructed the building from 1980 to 2002 on various date But it was demolished in 2002)

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