Query on cost of acquisition and cost of improvement

Tax queries 400 views 3 replies

Guest

Sir/Madam.

I have few queries in calculation of LTCG on sale of property.

1. I purchased a plot in 2001 for Ras.40000 and registered it for Rs.30000. In addition to 40k I paid the land developer Rs.5000 for registration expenses. Can rs.5000 be included in the cost of acquisition? What will be my cost of acquisition before indexation?

2. After 1 and 1/2 years land developer asked Rs.10000 for Layout Development charges. I paid Rs.5000 and he also provided a receipt for Rs.5000 stating "Plot Conversion charges" and 5000 as due (which he did not request later and not paid). Can Rs.5000 be included in 'Cost of Improvement' with indexation?

3. Sold the plot last year for Rs.4.5 lacs and the sale deed is also registered for Rs.4.5 lacs only (actual amount received) but the value as per stamp value authority(Guideline Value) is Rs.4.8 lacs. What should be taken as full value of consideration for CG? Can I mention Value of property as per stamp valuation authority as Rs.4.5 lacs since it is registered only for that amount?

4. I have invested Rs.3.5 lacs in Sec 54EC bond within 6 months. In the ITR it says "please specify details in section D". I have mentioned Section 54EC and amount of deduction as 3.5 lacs. Can I leave other fields empty - Cost of new asset, Date of its acquisition, Amount deposited in Capital Gains Accounts Scheme - since I didn't deposit in CG accounts?

Please clarify my queries.

Thanks

PS: I think i posted in the wrong category hence reposting here.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197052 Points Joined July 2016

1. Cost of acquisition in 2001 would be 30,000/- Plus 5,000/- paid to developer, if you have proper receipt for it.

2. Yes, development charge of Rs. 5000 would be cost of improvement in 2002/03........

3. Sell price for calculation of CG would be 4.80 lakhs. ( As per sec. 50C) (But 10% variation allowed by some courts, so you may take actual sell value also, but be ready for any addition)

4. "Can I leave other fields empty - Cost of new asset, Date of its acquisition, Amount deposited in Capital Gains Accounts Scheme - since I didn't deposit in CG accounts?"

Yes either empty, or if prompted, '0' zero value.