As per Provision of section 55(1)(b)of Income tax act,1961.
All capital expenditure incurred in making addition or alteration to the capital asset by assessee after it became his property are to be treated as cost of improvement in calculating STCG.
But it should be noted that, assessee are not allowed to take Indexation benifit if capital asset are held for less than 36 months.
CAclubindia
