Purchased a flat. Incurred full purchase cost through bank account. But in the sale deed full amount is not shown by the seller. At the time of resale can i claim the actual amount as Cost of Aquisition as the entire amount is through bank account and have proof of it.
Kindly assist me on this issue.
10 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 09 May 2021
But sale deed should be made in full amount otherwise you might not claim full cost of acquisition
Lotus Agrawal
(Practice)
(1361 Points)
Replied 09 May 2021
No in this case you can not claim full amount paid as your cost. amount shown in the registry paper shall be the actual cost.
sajith gopinath
(29 Points)
Replied 09 May 2021
Thank you for your response. So even if the payments are through bank, the assessee cannot claim the additional cost other than in the agreement. It will be a loss for the assessee.. right?
veerendar singh
(tax consultant)
(3306 Points)
Replied 09 May 2021
There exists no provision under income tax act which says that the cost has to invariably be the consideration as appearing in the sale deed. cost is the amount actually paid by you. i would claim the entire payment as my cost.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 09 May 2021
1) Usually sale deeds are registered on the basis of the guidance value (set by the local authorities) that is also used for the purpose of payment of stamp duty.
2) Total payments (usually made against agreement to sell) will be regarded as the cost of acquisition
3) Stamp duty and registration charges paid can be claimed as a deduction u/s 80C subject to the limit of Rs.1.5 lacs
sajith gopinath
(29 Points)
Replied 25 May 2021
In this case stamp duty is paid on the amount shown in sale deed which is lower than actual incurred cost. A seperate agreement showing actual cost has been made and fully through bank. So the stamp duty is paid less. Then can we claim that actual cost as the stamp duty is paid less?
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 25 May 2021
You may claim stamp duty that has actually been paid. In the above case, this will be computed on the basis of value as per sale deed.
veerendar singh
(tax consultant)
(3306 Points)
Replied 25 May 2021
Actual money paid must be the true cost of the property and nothing else.
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