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Short term capital gain

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Querist : Anonymous

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Querist : Anonymous (Querist)
13 May 2016 Dear Expert,

I, purchased a piece of Low land in the year 2014 in rs. 1.5 lac ( included all expenses ) and after filling the low I sold it in rs. 10 lac. Therefore, a short term capital gain is arisen.( 10-1.5)= rs. 8.5 lack
To filling the low I have already incurred rs. 5.5 lac to develop the low land.
My questions are :

(1) how much cost of improvement is allowed as per income tax law ?
(2) Which value should consider as a value of consideration whether it will be market value or as per deed value ?
Plz reply me ?
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ch durgaprasad

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ch durgaprasad (Expert)
13 May 2016 value of consideration taken as higher of market or deed value. for cost of improvement full value should be allowed.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
20 October 2021 1. As per bill amount (Tax paid bills with bank payment)
2. Deed Value.
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