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Construction cost can be calculated for capital gain tax or not

Tax queries 1599 views 3 replies

If i purchased a plot in 2001, and constructed a house on it. and sold it in 2022 january. 

Now for the purpose of calculating capital gain i have to only minus the cost of plot from the sale value and the result is my actual capital gain or i can also deduct expenses incurred in construction of house, modular kitchen, under ground water tank, rain water harvesting, modular kitchen and some other expenses. 

 

Replies (3)
The sale which happened in Jan 22 included the plot and the construction right? if so then yes you'll get deduction of the cost of construction. it is recommended to ensure that all the invoices or bills are properly kept to show the department in case a query arises.
All expenses incurred for keeping the house to fit for living.

Thanks for your valuable advise. The house was constructed 20 years back. In those days we usually paid all the amount to the contractor who constructed house and other aminities. We do not have any bills in our hands. In this case what are the options we are  having ? 


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