Capital gain on sale of property

1. For calculating the CGT , whether indexed cost of acquisition and improvement can be applied for sale of land under 54F ?
What is net sales consideration ? What the deductibles from Total sales consideration ?
If improvement can be deducted : The plot was purchased before 1990 and what are the types of expenses allowed as cost of improvements till 2001 and after 2001? (Whether he can claim exemptions for the expenses for fencing (2 times), periodic maintenance of the plot, construction of compound wall, incidental charges , stamp duty for reinvestment in new flat etc) .                                2. Supposing, X opts to execute Settlement deeds in favour of his wife and daughter – On sale of land by the Settlees – If reinvesting in the construction project of Y is done by one of the settlees and CGT exemption claimed on the value of flat to be allotted; Whether the other settlee can also claim exemption by investing her share in the Capital Gain Bond or another flat?
3.

Read more at: https://www.caclubindia.com/forum/capital-gain-on-sale-of-property-453143.asp
Replies (1)
Originally posted by : Laxman
1. For calculating the CGT , whether indexed cost of acquisition and improvement can be applied for sale of land under 54F ?

What is net sales consideration ? What the deductibles from Total sales consideration ?

If improvement can be deducted : The plot was purchased before 1990 and what are the types of expenses allowed as cost of improvements till 2001 and after 2001? (Whether he can claim exemptions for the expenses for fencing (2 times), periodic maintenance of the plot, construction of compound wall, incidental charges , stamp duty for reinvestment in new flat etc) .                                2. Supposing, X opts to execute Settlement deeds in favour of his wife and daughter – On sale of land by the Settlees – If reinvesting in the construction project of Y is done by one of the settlees and CGT exemption claimed on the value of flat to be allotted; Whether the other settlee can also claim exemption by investing her share in the Capital Gain Bond or another flat?

3.

Read more at: https://www.caclubindia.com/forum/capital-gain-on-sale-of-property-453143.asp

1.  Day to day maintenance in nature of repairs etc is not deductible.

 

2.  Any major improvement such as fencing, leveling etc is covered as cost of improvement 

 

3.  For all the costs including improvements etc, needs to be valued as at 1 April 2001 

4.  Each individual - wife and daughter need to take care of their respective share of capital gains and reinvestment for claiming exemption.

 

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