03 July 2024
Dear Sir, My query is as below My friend had purchased a Land in 2013 for Rs.600000 & house constructed in the same year. House & land sold in 2023 for Rs.33.50 Lakhs.
My query is whether capital gain is to be calculated separately for land & building & whether cost of construction of building is to be treated as cost of improvement.
03 July 2024
Capital gain to be calculated in aggregate. Yes construction cost can be added in aggregate cost of building as you have transferred building.
03 July 2024
Sales Consideration will be taken Rs.33.50 Lakh (aggregate value of land & building). and cost of construction of the house will be the cost of improvement.
CAclubindia
