Capital Gain - Fees for Valuation of property

1.Capital Gain - Fees for Valuation of property whether deductible while calculating capital gains. 

2. When tenant vacated the property, some damages occured to the permanent fixtures of the property and for this owner forfeited a part of security deposit given by tenant. Whether the sum so forfeited by owner of property is taxable or not and if yes under which head.

3. Further, owner paid some fees to the valuer for estimating the damage referred to in point 2 above. Whether this valuation fees is deductible.

Kindly reply with supprting judgements/sections/circulars/notifications/case laws.

Replies (1)

1) The expenses incurred in 1. and 3.  are deductible expenses.

 

2) Whereas the amount forfeited from security deposit is to be dedcuted from the purchase price while calculating the Capital gains.

 

Regards,

Devendra Kulkarni

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