Capital gain

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kunal (Querist)
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30 July 2013 Mr. A residing in his home since 1985, in 2010 he demolish his whole house and reconstruct the same...

now he sold his reconstructed house in 2012. please tell about the nature of gain (long term/ short term)?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 July 2013 The house is a long term capital asset.
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What ever is new done can be treated as cost of improvement and indexation benefit can be claimed.
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kunal

kunal (Querist)
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30 July 2013 sir, how to calculate cost of acquisition ?

what about cost of old constructed house?will it be included ?

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 July 2013 In my view, it will be included with all costs incurred for bringing the new house in present condition.
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