09 March 2020
Sirs, I bought a land in 2005 for 11 lak.of 1 acr - Sold a month ago. I was told the present deemed value is ~23 lak The sale value was 63 lak. I have paid 2 persons 5 lac brokerage- I paid thro bank rtgs & paid 5 % TDS each- deposited them also. I had built a compound wall -spent around 9.4 lak & digged a bore well for 8 lac. But these are done over 3 years, , with local masons etc. I dont a have a clear bill. Can I claim this as an expense. Thanking you for the advice. Ram
10 March 2020
Your sales consideration will be taken as Rs 63 Lacs. Cost of Purchase - subject to indexation is 11 Lac+ Stamp duty and Registration expenses paid at the time of purchase. You must remain in a position to produce supporting evidences and payment details -as regards the Cost of improvement. The cost of bore well yielding water ( not oil) is highly unjustified in my view. To file proper return consult a CA.
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