CAN MUNICIPALTY TAX PAID EACH YEAR BE CAPITALISED??
SUPPOSE IF WE BUY A PROPERTY FOR RS. 100/- AND PAY RE. 1/- AS MUNICPALTY TAX PER YEAR..
NOW IF WE POSSESS THIS PROPERTY TAX FOR TEN YEARS MUNICIPALTY TAX PAID BY US WILL BE RS.10/- (RE.1/- * 10 YRS) CAN I CAPITALISE THIS WHILE SELLING AND TAKE MY COST OF ACQUISITION AS RS. 10/- AND COST OF IMPROVEMENT AS RS. 10/- ???
THANKING YOU!!
No, you cannot take municipality tax as cost when calculating capital gains.
Varma Raja & Associates
Thrissur
CA Inter
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HKC | Chartered Accountants & Business Advisors
Ludhiana
CA
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S.B.G. & CO. CHARTERED ACCOUNTANTS
New Delhi
CA Inter
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CCI
Pro
CAclubindia
