SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
27 July 2010CASE STUDY OF CAPITAL GAIN.
ONE OF MY CLIENT PURCHASE HOUSE IN INSTALMENT FROM DDA . NOW HE WANT TO SALE THE HOUSE
SO ,PLS TELL ME IN THIS CASE HOW I DO THE INDEXATION OF COST OF PURCHASE.
PLS WRITE WHICH DATE SHOULD BE CONSIDERED FOR THIS INDEXATION.
ALSO GIVE ME THE CASE IN THIS MATTER OF ANY COURT. OR ANY REFERENCE.
REGARDS
SUDHIR CHAUHAN
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 27 July 2010
dear friend
according to me its the cost on the date of acquisition.because as per section 48 the date of acquisition is considered for computation of capital gain.
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 27 July 2010
DEAR SIR
I M ASKING ABOUT WHICH DATE SHOULD BE CONSIDERED
ALSO SHOULD INTEREST AMOUNT SHOULD BE CAPITALISED IN ACQUISITION AMOUNT OR NOT
PLS REPLY SIR
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 27 July 2010
dear friend
the date of acquisition is considered for indexation purpose. and yes dear interest will form part of cost of acquisition.
Harpreet
(* * * * * *)
(1670 Points)
Replied 27 July 2010
date of acquisition is the date on which u have purhcase the house.
Atul Gupta
(Ca final Article)
(39 Points)
Replied 27 July 2010
Date of Purchase of house property is considered as Date of acquisition and interest is also forming as Part of cost.
All expenses which are related to acquire the capital asset form as the part of cost.
CA Namrata ghosh
(CA)
(55 Points)
Replied 27 July 2010
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 27 July 2010
thanks namrata.U MEAN TO SAY DATE OF POSSESSION COMES TO THE CLIENT.
I ALSO THINK THAT.
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 29 July 2010
SORRY TO YOU
I HAVE COME TO KNOW THAT FOR THIS CASE FOR EACH YEAR COST OF IMPROVEMENT WILL BE FIND AND ACCUMULATE IT. AND THEN DEDUCT FROM SALE CONSIDERATION
CA Nitin Bansal
(INDIRECT TAX PRACTIONER)
(28 Points)
Replied 11 May 2012
I have similar case.
i think we should apply indexation to each installment seperately and then cumulate it to arrive at COA.
can you please site a case law or some other reference?
renuka saraswat
(student)
(26 Points)
Replied 25 March 2014
I hv got recently judgement by ACIT jhunjhunu for similiar case and judgement
1.department deniied to take interest as cost
2.Cost of acquisition is the cost of assessee till the date of possession certificate acuired by the assessee.
CAclubindia
