05 November 2011
I have a query regarding cost of acquisition; the details are as under.
Our client purchased land in 1998-99, and made further expenses in 2000-01 and 2004-05. the deed was made in 2008-09 for the said land purchased.
Now the client wants to sell the land in F.Y. 2011-12.
My query is that whether the expenses prior to the deed (i.e. exp. of 98-99, 00-01, and 04-05) can be claimed as Indexed Cost of Acquisition / Indexed Cost of Improvement? Or, he can avail the expenses only from 2008-09?
05 November 2011
I think it should be counted from the day when the land being a capital asset became the property of your client and merely payment does not mean the land became the property of your client. So it indexation should be reckoned from the day of registry when the title on the property came to your client..
I will reply you being very concrete solution later on. In mean time lets have some more reply on it..
CAclubindia
