Hi friends,
when we are calculating capital gains on sale of flat do we need to take into account sale value of land and Flat individually as we have to apply cost of indexation on land and depreciation on flat cost
Thank u
CA.Varalakshmi.M (Manager-Finance) (482 Points)
29 May 2012Hi friends,
when we are calculating capital gains on sale of flat do we need to take into account sale value of land and Flat individually as we have to apply cost of indexation on land and depreciation on flat cost
Thank u
Manish Negi
(Expert)
(394 Points)
Replied 29 May 2012
I think it is depends upon the value at the time of purchase.
If you know the separate cost of land and Flat both at the time of purchase, and you have made a payment toward both then, you have to calculate capital gain tax separately.
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 29 May 2012
Ok fine.
Actually flat is a depreciable asset.On depreciable asset we dont apply cost of inflation index.
But many cases I have seen that they have been applying CII.
Can u pls answer this query.
CAclubindia
