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Cost of acquisition for capital gain

aman tak (39 Points)

21 December 2020

i want to know that what type of cost should be added in the cost of acquisition of property?
like stamp duty and registration charges will be added. but with these expenses any other expenses can be added e.g. Legal charges, society formation charges, Share money and entrance fees, Electric and water charges, Development Charges, Adhoc maintenance charges, Infrastructure charges, External infrastructure charges..
So i want to know that all these expenses should be added to cost of acquisition or not??
Please guide me..

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5 Replies

Krishna Chaudhary (Accountant) (4531 Points)
Replied 21 December 2020

No,execept stamp duty and registration charges no other charges will added

3 Like

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ayusmita (Tax consultant) (5885 Points)
Replied 21 December 2020

Any expenses which are attributable to the purchase of property are allowed to be added in the cost of acquisition of the property
if after purchase of house these expenses comes then it's comes under cost of improvement

1 Like

aman tak (39 Points)
Replied 22 December 2020

But all these other charges are paid to builder at the time of purchase of property..
so will it not be allowed?

ayusmita (Tax consultant) (5885 Points)
Replied 22 December 2020

Any expenses incurred on repairs and renovations at the time of purchasing of house will include in Cost of acquisition

Entrance charge , maintaintance charge Society charges, Electric,water,gas charges are not included in COA and others Expenses nature if you tell I can tells you

And if you take stamp duty and registration charges as deduction under 80 C while purchasing of house then you can not added th in calculation of COA