hi frnds....
if I purchase a land today for Rs. 10,00,000/- and after a year, I construct a building on it costing Rs. 15,00,000/-. Now, I sale it after 3 years from today...at the time of sale land is valued at Rs. 15,00,000/- & Construction on it Rs. 20,00,000/-. This Land & Building hasn't been used for business purpose. Let me know exact treatment of capital gains in this case...specially whether cost of construction will be indexed or not & whether there will be short term capital gain on building in this case??
Regards
Neha
CAclubindia
