Expenses related to home renovations

Hello -

For a recent property sale, I do not have the necessary bills/receipts for improvements made to the home (Flat). Purchased the home in 2014 and made major renovations such as flooring, making the kitchen modular and adding Cupboard fixtures in all the 4 rooms (3 bedrooms + Main Room).

Since I do not have the receipts and unable to track down my bank statements, is there any other option (0nplace of the receipts) to claim these exemptions for capital gain calculations?

Is it okay /advisable to get these exemptions without the receipts?

As I purchased the property after 2001, is getting FMV from approved valuer an option here? If this is an option, should this FMV be used as cost of acquisition?

Could you please provide some insights and guidance here?

Thank you.

 

Replies (4)
Quick Summary
This discussion addresses the challenge of claiming capital gains tax exemptions for home renovations when original bills and receipts are unavailable. The original poster is seeking alternative methods to substantiate expenses for major improvements made to their property, including flooring, kitchen upgrades, and cupboard fixtures. They specifically inquire about using the Fair Market Value (FMV) determined by an approved valuer as a potential substitute for receipts, particularly for properties purchased after 2001, and whether this FMV can be used as the cost of acquisition. The consensus leans towards documentation being essential for claiming such deductions.

Renovations does qualify for sec 54 exemption subject to conditions.

Going back to my question on the deduction -

Is it okay /advisable to get these exemptions(expenses) without the receipts?

As I purchased the property after 2001, is getting FMV from approved valuer an option here? If this is an option, should this FMV be used as cost of acquisition?

Is it okay /advisable to get these exemptions without the receipts? As I purchased the property after 2001, is getting FMV from approved valuer an option here? If this is an option, should this FMV be used as cost of acquisition?

Read more at: https://www.caclubindia.com/forum/expenses-related-to-home-renovations-603125.asp
Is it okay /advisable to get these exemptions without the receipts? As I purchased the property after 2001, is getting FMV from approved valuer an option here? If this is an option, should this FMV be used as cost of acquisition?

Read more at: https://www.caclubindia.com/forum/expenses-related-to-home-renovations-603125.asp
Is it okay /advisable to get these exemptions without the receipts? As I purchased the property after 2001, is getting FMV from approved valuer an option here? If this is an option, should this FMV be used as cost of acquisition?

Read more at: https://www.caclubindia.com/forum/expenses-related-to-home-renovations-603125.asp
Documents are essentials.

You may still have options, but it would be better to first check what alternative evidence can support the renovation costs, such as contractor records, old quotations, payment records, or other documentation. For the FMV and cost of acquisition point, the applicable tax rules and valuation date matter, so it’s worth confirming those details with a tax professional before filing. Keep whatever evidence you can find, even if the original invoices are unavailable.

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