Expenses paid in cash allowed in capital gain?

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Student CA IPC / IPCC
29 Points Joined March 2014
Respected Experts,

One of our client sold her house for ₹ 1 crore in 2018. Purchased in 2012 for ₹ 50 lakhs. She spent ₹ 29 lakhs for improvement which was paid in cash. Cash amount withdrawn from mortgage loan taken for improvement.

are these expenses paid in cash admissible for calculating capital gain?
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On 23 March 2019 at 10:56 Report
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Team Lead
7558 Points Joined November 2011
if there are proper documents available to satisfy the officer regarding it's genuineness then it will be allowed else not
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On 23 March 2019 at 11:22
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CA ARTICLE
115 Points Joined July 2014
allowed but u should ignore the same because cash transactions attracts penalty in other sections of the income tax act
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On 23 March 2019 at 23:12


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