Please Help: Capital Gain
Posted Date : 18-Nov-2011 , 10:52:26 am | Posted By aakash
I have a house from my grand father and sold by me to compute it's capital gain i want cost of construction and improvement which i don't have because it's a very old house. can some one tell me how to compute cap gain in such situation. and if i take half of the money in cash can i deposited it in bank by showing it where it came from.
Category : Income Tax | Answers : 2 | Comments : 1 | Hits : 343
Answers
Answer By: Vikas Kundu
dear in my opinion it is a property of huf so u can show it in the hands of huf. for better application of law u can FMV on 1-4-1981 and indexed it and in case of improvement you need to collect evidence regarding the exp. incurred on it and then indexed it. And secondly u can take money in any form but keeping in mind the scrutiny norms.
Answer By: Ashish Karundia
Dear Akash,
Please take the purchase price as mentioned in the property papers (i.e. stamp paper) as the cost of acquisition. Further, you need to support what ever amount you are claiming as cost of improvement.
Further, as regard your query about the mode of money (i.e. either in cash or credit), i would suggest you to take the whole amount though proper channel (i.e. through cheque or ECS or Demand draft)and you can claim the deduction under section 54 in order to save income tax rather than taking the money in cash as by doing so you are taking a big risk considering the recent developments.
Hope the above meets your query.
Please take the purchase price as mentioned in the property papers (i.e. stamp paper) as the cost of acquisition. Further, you need to support what ever amount you are claiming as cost of improvement.
Further, as regard your query about the mode of money (i.e. either in cash or credit), i would suggest you to take the whole amount though proper channel (i.e. through cheque or ECS or Demand draft)and you can claim the deduction under section 54 in order to save income tax rather than taking the money in cash as by doing so you are taking a big risk considering the recent developments.
Hope the above meets your query.
Comments
aakash
19-Nov-2011 , 03:34:45 pmThanx for the relevant suggestion Mr. Vikas and Ashish, but as my grand father bought a land and then construct a house on it. In that case i don't have any cost of acquisition it's all cost of construction. Pls suggest