Cost of improvement

Dear friend,

        If u made any improvement in fixed asset than it allowed as a improvement cost.

       If u construction additional floor than it allowed as improvement cost.

when u sell the property u need to distinguish between land and building as building is depreciable asset and land is not.here u cant treat construction of 2 floor building as cost of improvement to land.u need to divide ur consideration between land and building.further no indexation will be available to building.so if u deduct such cost as cost of improvement along with indexation,how it department will let u do it