STCG/LTCG ADDITIONAL EXPENSES CRITERIA

If I purchase home in 2000 @ 5,51,000/- and additinal expences like commission 15000/- renevation 1 lacs  in 2002 . Is any criteria for showing such expences, Also if i purchase flat and after renevation one month time sold out the flat .The purchase cost was 20 lacs and additional expences 3 lacs. In STCG  such additional expenses consider or not and what is the condition for such expenses

Replies (5)

if you pay any expenses (direct nature)  for purchase a house is include in cast of purchase(HOUSE)

any renevation is considered cost of improvement  and decided the STCG/LTCG  from the preiod  of 

completing of renevation to sale of  assets (for mare than 36 month LTCG otherwise STCG)

Please clear my point properly As i purchase house and paid commission then internal  flooring change, water proffing ,painting,stamp duty,property tax,society charges ,MSEB  and furniture. My flat purchase cost was 20 lacs,additinal cost was 5 lacs .Flat was purchase in Feb 2011. Now if sold flat  in april 2011 is it all expences consider or not . As the ready recknor cost was 27.5 lack. My question is it all expences consider for STCG. Also in this transaction inflation cost consider or not. Please clea me properly so that accordingly i will make changes in the trasaction.

Additional expenses incurred by you of Rs.5 lacs would be considered as cost of improvement even for the computation of STCG. Being STCG inflation wuld not be taken in to account.

 

You need to keep proper evidences to prove the genuine ness of expense incurred by you.
 

In STCG if I made additional expenses as furniture will be consider an additional expense for STCG or not or it will attract stamp duty

Furniture cost will not attract stamp duty. You need to bifurcate the same in your sale agreement. However you will be eligible to consider the cost of furniture while computing STCG.

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