Please guide me....my client ( a pvt ltd Co) has land which it will now transfer in FY 13-14. It has received advance frm builder in FY 10-11 and 11-12 and it has already incurred some expenses related to the transfer in the FY 10-11 and 11-12. Please tell me while computing LTCG , will he be able to claim those expenses which it has already incurred in the earlier years or only those which it will incur in FY 2013-14 ?
Thanks in advance
Dear Pooja,
I think the expenses will be allowed since they are incurred in relation to the transfer... and the Act has not specified any cut off for the incurrance of the expenses
- Ankit
Agreed with ankit there is no time boundation in transfer related expenditures
If the expenditure is directly related to transfer which will be taking place in the FY 13-14 as u said, than u can claim the same.
Expenses on Transfer will be allowes as deduction while computing LTCG, since they are incured for the purpose of transfering the land
Maintain proper records of expenses incurred toward enabling transfer of property and avil the benifit of LTCG
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