CASE STUDY OF CAPITAL GAIN.
ONE OF MY CLIENT PURCHASE HOUSE IN INSTALMENT FROM DDA . NOW HE WANT TO SALE THE HOUSE
SO ,PLS TELL ME IN THIS CASE HOW I DO THE INDEXATION OF COST OF PURCHASE.
PLS WRITE WHICH DATE SHOULD BE CONSIDERED FOR THIS INDEXATION.
ALSO GIVE ME THE CASE IN THIS MATTER OF ANY COURT. OR ANY REFERENCE.
REGARDS
SUDHIR CHAUHAN
DEAR SIR
I M ASKING ABOUT WHICH DATE SHOULD BE CONSIDERED
ALSO SHOULD INTEREST AMOUNT SHOULD BE CAPITALISED IN ACQUISITION AMOUNT OR NOT
PLS REPLY SIR
date of acquisition is the date on which u have purhcase the house.
Date of Purchase of house property is considered as Date of acquisition and interest is also forming as Part of cost.
All expenses which are related to acquire the capital asset form as the part of cost.
thanks namrata.U MEAN TO SAY DATE OF POSSESSION COMES TO THE CLIENT.
I ALSO THINK THAT.
SORRY TO YOU
I HAVE COME TO KNOW THAT FOR THIS CASE FOR EACH YEAR COST OF IMPROVEMENT WILL BE FIND AND ACCUMULATE IT. AND THEN DEDUCT FROM SALE CONSIDERATION
I have similar case.
i think we should apply indexation to each installment seperately and then cumulate it to arrive at COA.
can you please site a case law or some other reference?
I hv got recently judgement by ACIT jhunjhunu for similiar case and judgement
1.department deniied to take interest as cost
2.Cost of acquisition is the cost of assessee till the date of possession certificate acuired by the assessee.
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