Hi
Scenario:Capital asset sold - Residential house property.
Land was purchased by the assessee a d then property has been constructed.
Whether cost incurred towards construction of house property/Bank loan for construction can be considered as "cost of improvement" while computing tax on Long term capital gains?
No deduction has been claimed by assessee with regards to construction of house property, such as
(I) Principal repayment of loan borrowed has not been claimed u/s 80C
(II) Interest paid on housing loan under Income from house prooerty
How the bank loan was utilized? Payment made to contractor/s, material purchased etc. can help to substantiate the claim.
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