Cost of improvement in sale of property
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 January 2019
PROPERTY-bought in 1969.sold in 2015. indexation benefit for 1981availing. In cost of improvement ,claims made for 1985-86 for improving stairs. 1996-97 for additions when husband retired & vacated govt. accomodation,in 2007-2008 when property letted out to multinational & lift (structure only)&7 toilets provided. EXPENDITURE OF COST OF IMPROVEMENT BY WITHDRAWALSIN BANK ACCOUNT.NO OTHER DOCUMENTS AVAILABLE AS DURING SHIFTINGS NOT PRESERVED ,as it was never presumed that property will be sold sometimes in future May I HAVE CITATIONS/YOUR VALUED VIEW FOR ACCEPTING BANK WITHDRAWALS FOR COST OF IMPROVEMENT. undertaking for this can be given sushila p nawalkha
15 January 2019
If you can not substantiate your claim then the benefit cannot be provided to you.
[S.101 of the Indian Evidence Act, Whoever desires any Court to give judgment as to any legal right or liability dependent on the existence of facts which he asserts, must prove that those facts exist. When a person is bound to prove the existence of any fact, it is said that the burden of proof lies on that person.]
Withdrawals from a bank can be used for n no. of purposes. This alone, will not help you.
However, in your case, it is not that you do not have any evidence.
You must have the details of the original superstructure in registry & property tax return, and where construction is carried on legally, then approval has to be taken from the municipality/ local authority, that is one of the evidence to substantiate your claim.
The property tax return shows the details as to the year in which the construction was carried out and the construction area, etc. All this can help you in substantiating your claim. The property was let-out to a multi-national, the agreement should be covering the details of the structure. Further, an increase in the income is also an evidence
Having the photos & videos of the old property and the new property will also add to the evidence as to the actual construction.
Adding a lift also requires permission.
All these can prove that the construction was actually carried out and the amount can be allowed on the bases of a fair estimation.
[But the amount depends upon the discretion of AO.]
Further, you can make a request to the VO through AO
It's possible for AO to refer the case to VO(Valuation officer).
As per S.142A. (1) The Assessing Officer may, for the purposes of assessment or reassessment, make a reference to a Valuation Officer to estimate the value, including fair market value, of any asset, property or investment and submit a copy of report to him.
As per S.142A(4) The Valuation Officer shall, estimate the value of the asset, property or investment after taking into account such evidence as the assessee may produce and any other evidence in his possession gathered, after giving an opportunity of being heard to the assessee.
If the amount is high, and you have the proof of actual construction (like some of the examples which I cited), then you can even go to court for this if the AO is not allowing anything. But you must not presume those entire withdrawals will be considered as COI.
[You may also refer my post on a similar topic over
http://www.forum.charteredclub.com/threads/compute-capital-gains-if-purchase-price-not-available.8136/]
prateek63@yahoo.co.in
[S.101 of the Indian Evidence Act, Whoever desires any Court to give judgment as to any legal right or liability dependent on the existence of facts which he asserts, must prove that those facts exist. When a person is bound to prove the existence of any fact, it is said that the burden of proof lies on that person.]
Withdrawals from a bank can be used for n no. of purposes. This alone, will not help you.
However, in your case, it is not that you do not have any evidence.
You must have the details of the original superstructure in registry & property tax return, and where construction is carried on legally, then approval has to be taken from the municipality/ local authority, that is one of the evidence to substantiate your claim.
The property tax return shows the details as to the year in which the construction was carried out and the construction area, etc. All this can help you in substantiating your claim. The property was let-out to a multi-national, the agreement should be covering the details of the structure. Further, an increase in the income is also an evidence
Having the photos & videos of the old property and the new property will also add to the evidence as to the actual construction.
Adding a lift also requires permission.
All these can prove that the construction was actually carried out and the amount can be allowed on the bases of a fair estimation.
[But the amount depends upon the discretion of AO.]
Further, you can make a request to the VO through AO
It's possible for AO to refer the case to VO(Valuation officer).
As per S.142A. (1) The Assessing Officer may, for the purposes of assessment or reassessment, make a reference to a Valuation Officer to estimate the value, including fair market value, of any asset, property or investment and submit a copy of report to him.
As per S.142A(4) The Valuation Officer shall, estimate the value of the asset, property or investment after taking into account such evidence as the assessee may produce and any other evidence in his possession gathered, after giving an opportunity of being heard to the assessee.
If the amount is high, and you have the proof of actual construction (like some of the examples which I cited), then you can even go to court for this if the AO is not allowing anything. But you must not presume those entire withdrawals will be considered as COI.
[You may also refer my post on a similar topic over
http://www.forum.charteredclub.com/threads/compute-capital-gains-if-purchase-price-not-available.8136/]
prateek63@yahoo.co.in
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 January 2019
Documents of period prior to 7 years are often not retained,as no one foresee sale of his house. TOTAL SALE IS BY CHEQUE. TAXPAYER IS GOING TO PAY HIGH TAX,SAY ONE CRORE.SHOULD NOT SUCH TAXPAYER ASKING COST OF DEVELOPMENT ,SAY 16000 (routine remodification of stairs)/in 85-86,200000/-in 96-97( shifting residence from govt. accomodation to this house), 400000/-in 2007-8(at the time of letting out premises) SHOULD GENUINE SPENDING SHOWN BY WITHDRAWALS be not accepted
27 September 2021
1. General maintenance do not make part of Cost of improvement.
2. All the Expenditures are to required to be justified with tax paid invoices and payments by banking mode.
2. All the Expenditures are to required to be justified with tax paid invoices and payments by banking mode.
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