Cost of improvement capital gain

Whether cost of improvement can be taken if wife is the owner of the building and invoices of improvement are received in husband's name
Replies (6)
Quick Summary
This discussion explores whether capital gains tax relief on building improvements can be claimed when the invoices are in the husband's name, but the wife is the legal owner. Suggestions include revising invoices to reflect the wife as the recipient, as per CGST rules, or for the wife to reimburse the husband and revalue the property in her name to potentially claim tax benefits.

Wife can have tax benefits only when she has decent income on her own. This makes her legitimate owner. Considering this, logically, she can reimburse you the amount from her account and revalue the building under her name is my opinion.

Wife can have tax benefits only when she has decent income on her own. This makes her legitimate owner. Considering this, logically, she can reimburse you the amount from her account and revalue the building under her name is my opinion.

I think she is allowed to take benefit.

First of all the money that individual pays against their Home improvement loans are tax deductible. However, it is also tax deductible upto 30,000₹ if its is paid directly by the homeowner.

Thanks for your suggestions..the amount given to contractors from the joint account..the invoice and agreements with contractors for improvement is in the name of husband.. merely because of this whether the cost of improvement will disallow?

i will suggest that you should get revise the invoice because as per RULE 46 of CGST there is requirement to mention NAME of Recipient, hence you can face problem is future at time of AUDIT

Read more at: https://www.caclubindia.com/forum/billed-to-name-mistake-on-invoice-421260.asp

so, you can easily get the invoice changed to your name. Further, invoice act allows change of name.

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