Expenses related to home renovations

833 views

Save Share

PB

41 Points Posted on 18 October 2023

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 (5)

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.

sabyasachi mukherjee

Profession

19978 Points Posted on 18 October 2023

Renovations does qualify for sec 54 exemption subject to conditions.

PB

41 Points Posted on 18 October 2023

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

sabyasachi mukherjee

Profession

19978 Points Posted on 25 October 2023

Documents are essentials.

Alexander Moreau

36 Points Posted on 17 August 2026

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.

Aashok Kumar Sharma

Finance/Compliance Consultant

69816 Points Posted on 31 October 2026

FMV as on 1 April 2001 under Sec 55(2)(b) is available only for assets acquired before that date, so for a flat bought in 2014 a valuer's report cannot substitute for cost; cost of improvement is deductible under Sec 48 only when proved by evidence such as contractor invoices, bank debits or society permissions, and an unsupported claim is likely to be disallowed.