An Resident Individual purchased a land for Rs.87,50,000/- and paid Rs.526,100/- as registration, stamp duty and legal expenses for that land on the year 2008-09. On May 2010 he paid Rs.1250000/- as Battlement Charges to Ahmedebad Municiple Authority. on October, 2014 he sold the land for Rs.11200,000/-. Now when he calculate LTCG the expenses paid to AMA for Battlement Charges to be treated as development expenses and added to the cost of purchase or not.
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Capitalising Expenses paid to Municipality for Battlement Charges
Replies (9)
It should be added to the cop.
Yes according to me amount paid to municipal corporation will added to cost
Yes it should be added to the cost
It will be consider as cost of improvement.
my total taxable income is Rs.655740/- for a.y.2014/15 i calculate tax Rs.62982(as per ready recnor) but i dont understand why Rs,5000/- is going extra in calculation
Probably u hv not taken the slab rates properly
Refer case study on bettlement charge..Nature of expenditure to be considered
Yes it should be added to the cost of land
Cost of battlement is to be considered as cost of improvement. Use index accordingly.
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