Capital gain for house

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2017 Sir,

An individual has a house purchased by him in 1990, from his own income .

He has made some changes and additions and renovations, in this house, for 3 or 4 times, during 1990 to 2017.

But, he has no any invoices of purchase of this house. He does not have any invoice of any renovation work, to prove the expenditure of renovations actually made.
No any other records or documents are available to decide the cost of purchase and cost of additions and renovations.

Now, if this house is to be sold, then …
How to decide the indexed cost of acquisition of this house, to arrive at the capital gain?
How to calculate the capital gain ?

Can I take any amount I want , which is beneficial to me, as Purchase price and as sale price, to arrive at lower capital gain ?

Please, guide and give the solution in this.
Thanks.

Studentsca

Studentsca (Expert)
Follow

20 June 2017 If no document are available to prove purchase price calculate as per stamp duty valuations.(advisable) Sale value will be stamp duty value or agreement value whichever is higher.

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 And what about renovation expenses made?

How to decide exact renovation expenses? Because no any invoice of these expenses are available.
So, can he take any amount as renovation expenses ?

In absence of any valid invoice of renovations,
will he not be eligible to claim those expenses for calculation of capital gain ?

Upgrade to CAclubindia Pro. Subscribe Now!

Studentsca

Studentsca (Expert)
Follow

23 June 2017 You will need proper documentation for claiming that expenditure.