Deduction of Rent from Capital Gain

My earlier property was reconstructed by a builder during 2016-2018. During the reconstruction period I had to stay in a rented accommodation for 20 months for which I paid the rent via post-dated cheques. The builder did not reimburse this, so I had to bear the complete rent.

In 2022, I sold this property. Now, to file the ITR can I add the rental amount of 2016-18 in the cost of acquisition of this property? Can it be deducted from the capital gain amount?

Rakesh

Replies (2)
Quick Summary
A property owner is asking if they can deduct 20 months of rent paid for alternative accommodation during a reconstruction period (2016-2018) from the capital gains when they sold the property in 2022. The advice given is that this deduction is not eligible because the rental expenditure occurred before the owner took possession of the reconstructed property.

Not eligible. You received the possession of the property after the rent expenditure.

Not at all eligible.

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