Proving cost of improvement

Tax queries 898 views 3 replies

Long term capital gain - how would one prove cost of improvement without bills? I read somewhere that in such case, one should have income tax approved valuer estimate the cost and such. The changes were made in 1981-1982. Will a valuer be able to give an estimate for that time? Where to find such valuer?

Replies (3)

Hi , I think you must have taken loan if for some purpose for the cost of improvement . That loan documents will suffice. 

Originally posted by : SHASHANK GOYAL

Hi , I think you must have taken loan if for some purpose for the cost of improvement . That loan documents will suffice. 

no, I dont think the person took any loans. Any other means to prove the same? I'm sure neighbors know, but will ITO listen to the neighbors?

Originally posted by : ProgTick


Long term capital gain - how would one prove cost of improvement without bills? I read somewhere that in such case, one should have income tax approved valuer estimate the cost and such. The changes were made in 1981-1982. Will a valuer be able to give an estimate for that time? Where to find such valuer?

when improvement took place , it must have been recorded in the balance sheet of the assessee by adding the capital asset value.

local municipal bodies have made assessment on the enhence improved portion of the property, so you can get the value addition as per the valuation prevailing at that time.

 

any of both above would be enough to prove the facts


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