Gaurish kamat (CA in pratice) (45 Points)
26 February 2014Dear All
My client bought some land, and then built a house on the same three years back. Now he is selling the house. How to calculate Cost of Acquisition for the same?
Is it based on bills of expenditure incurred to build house?
SAURABH NENE
(Chartered Accountant)
(226 Points)
Replied 26 February 2014
Yes in my opinion cost of construction will the cost of acquisition.
If the plot of land on which hose is constructed is appertanent to the house and that plot is also being sold along with house, the cost of plot of land will also be included in cost of acquistion.
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 27 February 2014
in my opinion cost of constructed property will be as follows:
Cost of land
cost of stamp papers involved in registry of plot
brokerage paid when this plot had been bought
cost of material involved in construction of house (bills Required)
Cost of labour involved in construction (generally labour charges paid in cash and one should have that much cash in hand)
Thanks
SHASHANK AGARWAL
(self employed)
(114 Points)
Replied 02 March 2014
Cost of Acquisition for the house will be = cost of acquisition of land + all the cost incurred in construction of the house + pre construction interest if any
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