Cash exp for improving house after buying

Ankit (C.A.-Student) (680 Points)

14 August 2013  

Hello everyone


An assessee has bought a house preoperty for his own residence last year. Before and after registery, he made a lot of cash withdrawl from banks which has been utilised for registering the property(stamp duty+document writer etc) and for some improvement and renovation of house.


My query is

1)whether this expense can be treated as 'cost of improvement' or be included in 'cost of purchase' for I. Tax Act.?

2)whether this expense can be considered for I. Tax in form of amount paid to labour(mason/painter/plumber etc) + purchase of material ( building material, paint material) for which no bill is available and payment made in cash?