I am constructing the house now. After the house construction is done, do I need to declare to the Income Tax department on the valuation of the House and get a certificate? I know that I need to do this for filing the property tax from next year but do I need to that for Income tax department is the question?
Also for the valuation, how do I go about it, do certain authorized tax experts help or need to get authorized engineer's to approve the valuation, please let me know?
I am a salaried employee and any amount that comes to me is after deduction of tax only.
10 May 2012
Dear Narayana you can show the total cost of construction for the house as the value of house in your books for the income tax purposes. You need not to do any valuation of house from any expert.
Thanks for your reply. I have one follow-up question. When do I need to show the cost of construction for Income tax purpose? The reason I am asking is, I don't need to declare the house to Income Tax department right? If the IT department wants to audit, then I need to show them the funds and the other stuff right? Please clarify this.
CAclubindia
