Q1. I sold my property in Oct 2022 and bought a new one at a lesser amount than the amount received. To assess the capital gain I know that the expenditure on home improvement before selling is added to the indexing amount. I had made some improvements in my earlier property from 2014 to 2022. I have the bills for most of them but some of these were paid in cash to the vendors.
I wish to know whether the bills that were paid for in cash can be added to it.
Also, some bills have either been misplaced or not taken from the timber merchant and the carpenters. Can that amount be added somehow because it was a considerable sum spent?
Q2. I bought the new property in Nov 2022. But it is a raw house without any wood work at all, not even lights, fans and other fixtures. In the FY 22-23, I have incurred an expenditure of 15 lakhs on these fitments and would be spending another 5 lakhs in the current financial year 23-24. This is in addition to the cost of the house, stamp duty, registration & broker’s commission.
For capital gain assessment, is it admissible to add this expenditure (incurred on wood work and basic fitments towards making the house habitable) to the investment in the new house?
CAclubindia
