payment oto advocate for captial gain

525 views 3 replies

vijay singla

learner

340 Points Joined February 2010

dear friends

i have purchased a plot from huda in 1991 for Rs 3 lakhs and incureed rs 20000 during the period 1993 to 2005 for various legal expenses like advocate fees etc as huda was not developing the plot. i have also incurred rs 30000 for conveyance deed in 2010-11 . beside this i received rs 50000 as interest from huda for late development . now i have sold this plot for Rs 23 lakhs . what will be my capital gain? is court exp will added to cost of acqusition and indextation of the same should be done year wise. is interest reced will be added to sale consideration for purpose of calculating capital gain . i aslo invested rs 12 lakhs u/s 54ec . pls reply if sure

Replies (3)

Sunshine

Helping All

10575 Points Joined March 2010

no the legal expenses and conveyance expenses won't be treated as additional improvements and cant be added to the cost of acquistion coz it doesn't amount to any value addition in the capital asset...

The interest received cant be treated as a sale receipt as per my knowledge....it will be taxable under IOS...

wait fr others to reply..

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

you had to account such expenses in the year of incident when they take place, now what u want to do?

u got interest , 50k ( spent 20k as legal fees ............and 30k regn) 50k finish ..means szero

if u show 50k now, it would get taxed in the year of receipt, and tax with interest and concealment of income will be initiated.

now ur 3 lacs is available for LTCG get indexation benefit and enjoy ............................

Vijay

Adamo Studio

2112 Points Joined March 2011

Originally posted by : U S Sharma
	you had to account such expenses in the year of incident when they take place, now what u want to do? u got interest , 50k ( spent 20k as legal fees ............and 30k regn) 50k finish ..means szero if u show 50k now, it would get taxed in the year of receipt, and tax with interest and concealment of income will be initiated. now ur 3 lacs is available for LTCG get indexation benefit and enjoy ............................