Capital Gain on Land Acquisition

Efiling 1974 views 2 replies

iam filing ITR 2 for a salaried individiual AY 2011-12...The assessee has recieved compensation on land/house acquisition by NHAI... After Indexing his Capital Asset works out to be RS. 405270..he is recieved a compensation of 412042...his capital gain is 6772...

 

Now I hav two Questions

1.) In the Long term Capital Gains Schedule , Coloum B.2.b(i) HAS "COST OF ACQUISITION AFTER INDEXATION' and the Next Coloumn has 'COST OF IMPROVEMENT AFTER INDEXATION".....i want to knw if the cost improvement means the cost house or structure that is build on it....or is it that the entire cost that is the indexed cost of land and structure should be mentiontioned in "COST OF ACQUISITION AFTER INDEXATION'

 

2. IN THE EFILING FORM THERE IS NO SPECIFIED COLUMN TO CARRY OUT THE NON INDEXED COST OF ACQUISITION...THE FORM TAKES ONLY INDEXED COST...HOW WILL THE CPC DETERMINE WETHER OR NOT THE CAPITAL GAIN CALCULATED IS CORRECT???

 

I AM CONFUSED WETHER I SHALL EFILE THIS CASE OR MANUAL...

DO GIVE YOUR OPINIONS...

 

Replies (2)

 cost of improvement means all expenditure of a capital nature incurred in making additions or alternations to the capital asset .........

Cost of acquisition of an asset is the sum total of amount spent for acquiring the asset........

 

So these are two different costs under same head......

I thnk efilling is d btr option

lets suppose that A purchases a land in Rs 10000.00 and then builds a house on it after 3 years for Rs 65000.00.............

then COST OF AQUISITION = Rs. 10000.00

AND COST OF IMPROVEMENT = Rs. 65000.00

RIGHT????


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