Long term capital gain on sale of house/plot

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2011 One of my client purchased a house in 2005 for Rs 10 Lacs. He also availed Home Loan for 6 Lacs & full home loan was repaid in 2009.In 2007 he spent approx 25 Lacs on construction of balance portion/First floor & on various furnishings/fittings. He wish to sell the same in 2011 for approx 40 Lacs (or market price, whichever is higher) My question is:-
1. How LTCG will be calculated in above case?
2. What is justification of additional cost of Rs 25 Lacs as there are no paper documents available at present?
3. If there is any Taxable LTCG, how the same can be saved?

Thanx in advance....kindly help

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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13 November 2011 40 lacs - indexation cost of 10 lacs - indexation cost of 25 lacs = LTCG/(L)
and also i dont think that will come gain..but if gain come then invest in section 54/EC to claim exemption...

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2011 Thank you Ayush, but wot about the proof of cost of construction/furnishing/finishint etc.

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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14 November 2011 Proff Can Be :

1> Transaction Routed Throgh Bank
2>Invoice

If u Dont Have 2nd One, Then Whether U Paid Throgh bank or Cash.