Vishal Kamdar (Manager) (38 Points)
13 March 2014please let me know what would be the cost of house if the house was purchased prior to 1/4/81 and the building was redevelped in FY 2007-08 and new house was alloted with Increase in area.
JAINENDRA JAIN
(ACS/CA)
(1668 Points)
Replied 13 March 2014
FOR VALUE OF ASSETS PRIOR TO 1.04.81 FAIR VALUE ON 01.04.1981 IS TO BE CONSIDERED.
ADD THE INDEXED COST OF IMPROVEMENT FOR 07-08.
THIS WILL BE THE COST OF OLD HOUSE.
JAINENDRA JAIN
(ACS/CA)
(1668 Points)
Replied 13 March 2014
FULL VALUE OF CONSIDERATION - XXX
LESS : INDEXED COST OF ACQUISTION
TAKING FAIR VALUE AS ON 01.04.1981 XXX
AND PROVIDE INDEXATION
INDEXED COST OF IMPROVEMENT
FOR 07-08 XXX
LTCG XXX
Vishal Kamdar
(Manager)
(38 Points)
Replied 13 March 2014
How to get the FMV as on 1/4/81 ie whether to apprach the registered Valuer for this or any specific method is there to calculate the FMV .
Also the building was redeveloped and they have charged some amount for the additional space
JAINENDRA JAIN
(ACS/CA)
(1668 Points)
Replied 13 March 2014
There are different methods of valuation and has to select an appropriate method for arriving at fair market value. As the statute does not prescribe any particular method, the comparative sale method or rent capitalization method as applicable may be applied.
JAINENDRA JAIN
(ACS/CA)
(1668 Points)
Replied 13 March 2014
ITS BETTER IF YOU REFER IT TO PROPER VALUATION OFFICER AS IN FUTURE DISCREPENCY MAY NOT ARISE.
WITH REGARD TO ADDITIONAL SPACE IF THE AMOUNT PAID IS SIGNIFICANT THAN TAKE IT AS COST OF ACQUISITION AND PROVIDE INDEXATION OTHERWISE INCLUDE IT UNDER COST OF IMPROVEMENT.
HOWEVER IF YOU HAVE PAID STAMP DUTY FOR PURCHAE OF ADDITIONAL SPACE.
BETTER SHOW IT AS COST OF ACQUISITION.
REGARDS.
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