Cost of acquisition for self constructed house

Tax planning 1126 views 3 replies

Dear All

 

My client bought some land, and then built a house on the same three years back. Now he is selling the house. How to calculate Cost of Acquisition for the same? 

 

Is it based on bills of expenditure incurred to build house?

Replies (3)

Yes in my opinion cost of construction will the cost of acquisition.

If the plot of land on which hose is constructed is appertanent to the house and that plot is also being sold along with house, the cost of plot of land will also be included in cost of acquistion.

in my opinion cost of constructed property will be as follows:

Cost of land

cost of stamp papers involved in registry of plot

brokerage paid when this plot had been bought

cost of material involved in construction of house (bills Required)

Cost of labour involved in construction (generally labour charges paid in cash and one should have that much cash in hand)

 

Thanks

 

Cost of Acquisition for the house will be = cost of acquisition of land + all the cost incurred in construction of the house + pre construction interest if any

 

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