Whether interest paid to authority will be part of coa

This query is : Resolved

S.hussain (Querist)
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28 October 2016 Dear Sir/Madam,

Please confirm whether INTEREST PAID ON ACCOUNT OF LATE PAYMENT OF PLOT INSTALMENTS AT THE TIME OF REGISTRATION, WILL BE CONSIDERED IN COST OF ACQUISITION OR NOT.

eg.

*Sale consideration of a plot is Rs. 1crore
*Amount paid to Authority including stamp duty is Rs. 38lacs
*Interest paid to Authority (while registration) on late payment of instalments is Rs.34lac.

Note:- Entire amount paid to Authority is Rs.72Lac(38+34lacs) through DD and client purchased the another residential flat within one month of Rs.32lac.

Kindly suggest the maximum amount of exemption that can be allowed and what would the tax payable under CAPITAL GAIN head.

ritujain

ritujain (Expert)
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29 October 2016 My opinion interest Paid on account of late payment of plot installment not calculate the cost of plot. Capital gain calculation required Date of installment and Rs. + Sale Date & amount than require further investment in which date.