cost of aquition
This query is : Resolved
20 July 2010
dear experts,
if a person has purchased a house property by taking loan, and has claimed interset deduction under section 24(b), and after 4 years he is selling that particular house property.Will cost of acquition while computing long term capital gain include the interst part which he has incurred while purchasing that property?
if yes,why and if no why?
dear experts,
if a person has purchased a house property by taking loan, and has claimed interset deduction under section 24(b), and after 4 years he is selling that particular house property.Will cost of acquition while computing long term capital gain include the interst part which he has incurred while purchasing that property?
if yes,why and if no why?
20 July 2010
Yes, Interest part is part of purchase cost like principal amount.
You are also claiming deduction for principal repayment u/s 80 C alonwith interest deduction u/s 24.
By claiming dedcution regarding this, it may not be that it will not part of cost of asset.
i.e cost of house = Pricipal Payment plus Interst = Total of Instlament paid.
You are also claiming deduction for principal repayment u/s 80 C alonwith interest deduction u/s 24.
By claiming dedcution regarding this, it may not be that it will not part of cost of asset.
i.e cost of house = Pricipal Payment plus Interst = Total of Instlament paid.
Message likes :
1 times
20 July 2010
Interest part would not form part of the cost of acquisition.
Cost of acquistion would be only the cost at which it is bought. interest payments are already claimed as deduction under house property and u cannot claim the same interest exp again under capital gains
one more point to be included is since the house is sold within 5 years whatever amount claimed as deduction u/s 80C will be deemed income in the hands of the assessee in the year of sale
Cost of acquistion would be only the cost at which it is bought. interest payments are already claimed as deduction under house property and u cannot claim the same interest exp again under capital gains
one more point to be included is since the house is sold within 5 years whatever amount claimed as deduction u/s 80C will be deemed income in the hands of the assessee in the year of sale
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Movement of goods by packers and movers - type of sale - Reg.
- Missed uploading GST Invoice
- Appointment of Auditor By Form ADT-1
- Gratuity paid to legal heir above 20 lakh is taxable or not
- RCM and same line
- ARCA LOGIN
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
