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Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2011 Dear experts. i hav bought a flat from builder. i started giving Rs. 100000 annually since 2000 as installment to builders. but possession was given to me in 2008. after that i have incurred Rs. 200000/- in 2009 for painting etc of house.
My query is: can i claim indextation on the installment paid at the time of sale? will this be allowed yearwise? will Rs. 200000/- paid for painting be treated as renovation etc and indextation be allowed?
pls reply if sure also quote the section.
thanks in advance.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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10 February 2011 Indexation is calculation for present value of property. So you have to calculate the current value based on purchase price. There is no realtion with instalment payment. You can not claim painting amount expended by you, becaues it does not come under cost of improvement.

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2011 dear shailesh ji thanx for ur reply. bt my point is that indextion rate for installment made in 2001& other years should be taken for relevent years or rate of indextation will be taken of year of possession. Moreover painting work has be done in new house for the first time . shoud not it be capitalised and taken as coast of improvement