Parameters to consider to calculate the cost of acquisition

Planning to sell a furnished apartment. Trying to calculate the current market price of the house and the capital gain. Which of the following could be included in the calculation of cost of acquistion/cost of improvement/other costs related to selling? 
(1) paid brokerage while buying the house, also will pay brokerage while selling the house
(2) travel fares during buying and selling
(3) Furniture cost
(4) painting, POP (false ceiling), rewiring
(5) security door,  balcony extension, gril
(6) While buying this property the agreement was made of 50 Lacs. I have the registered agreement as per the law. Apart from this, I paid 2 lacs extra to the builder for Development charges (electric cable,electric meter, water connection, drainage connection), Club house charges, service tax on development charges, service tax on club house charges, service tax on Ad hoc maintentance. Builder had provided me a separate bill for this 2 lacs but it is not included in the sales agreement. My query is: what would be the cost of acquisition? Is it 50 lacs or 52 lacs? 

Many thanks.

Replies (8)

If you had paid the additional development charges by cheque/DD and have retained receipt of it, you can include it into COA alongwith brokerage, stamp duty & registration charges.

Any repairs and maintainance or improvment related to the flat (but not furniture/fixtures) with proper document can help you to calculate COI.

Generally furniture is sold on seperate terms and is not included in the flat value.

Dear Dhirajlal Sir,

Thank you so much for your kind message. You have explained but I fail to completely understand. I still have few queries.

Which of the following could be included in the calculation of COA/COI/other costs related to selling of furnished apartment? I have the bill for everything. If you could please just say that number 1,5,7 (for example) from the below could be included...should be ok.

       (1) travel fares during buying and selling

(2) painting

(3) POP - false ceiling

(4) rewiring

(5) security door

(6) balcony extension

(7) gril

       Also paid the below to builder before taking possession

(8) Development charges (electric cable, electric meter, water connection, drainage  

      connection)

(9) service tax on development charges

(10) Club house charges

(11) service tax on club house charges

(12) service tax on Ad hoc maintentance

 

As such selection is more subjective then objective.

Principle remains same............

E.g. COA can include...... 8 & 9

COI...... can be ....... 5,6 & 7....... other expenditures are debatable......

Dear Dhirajlal Sir,

Thank you so much for your kind support. 

It is highly appreciated.

Regards

Most Welcome, Dear.......

I have purchased an apartment in April 2017 . I want to know if the cost incurred towards, House Registration, Stamp Duty, Servie Tax, VAT & TDS are also incouded in the calculation of Indexed cost of Acqusition. I got the possession of the flat in June 2017. So can i sesll it on or after April 209 or June 2019 so that the gains form the sale of the flat are considered as long term capital gains ?

Means that club membership is not part of COA?

If its cost included in agreement, it will be included, otherwise it requires to be proved as if it was mandatory.

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