LONG TERM CAPITAL GAIN

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This query is : Resolved

YOGESH MANTRI (Querist)

27 July 2010 SIR

say a house property is sold after 10 years from the date of acquisition, at Rs.80 lakh on 20.06.09

cost of acquisition is Rs.25 lakhs on 01.04.1999

there after the cost of improvement is Rs.2 lakh on 01.04.2002

and further cost of improvement on 01.06.2008 Rs.2 lakh

my query is can we apply INDEXATION benefit to last of the cost of improvement on 01.06.08 Rs.2 lakh and reduce the same from the sale of house for arriving at LTCG ? or will it be STCG ? please explain

IS THERE ANY CASE LAW TO SUPPORT THE CALCULATION OR INCOME TAX PROVISION?

srinath

srinath (Expert)

27 July 2010 as far as m concerned u cannot apply indexation benefit to the last cost of improvement. but again it would not be treated as short term capital gain cos it was for a long term capital gain

tat is for cost of acquisition and cost of improvemtn in 2002 indexation benefit shall apply. but for 01.06.2008 improvement no indexation benefit but would cont as long term capital gain

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