14 July 2013
I purchased a plot of land in 1979, built a house in 1980 with corporation approved plan. In 2008, I constructed additional living space, also with corporation approved plan.
I have record for the purchase of the plot, but the record for the house construction in 1980 and 2008 has been lost.
I have obtained a valuation report from an IT department approved building valuer for the cost of the building as at 1980 and the additional cost as at 2008.
1) Will IT department accept calculation of capital gain in my ITR2 based on the cost taken from the valuation report?
2) Should I attach the valuation report with my ITR2 or produce it only when asked for?
3) If calculation based on valuation report is not acceptable, what course of action do you recommend in my case?
(1)You have obtained valuation report and based on that report, you are calculating capital gain, IT Dept. should accept the calculations as you have a basis of your calculation.
(2) No papers/documents are allowed to be attached with ITR 2 hence, produce it whenever it is asked for.
(3) Based on the case to case basis and depending on the facts and documents available, you can decide course of action, if officer will not accept your valuation. If due to difference of opinion, tax demand will be high, you should consult to a CA.
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