An Individual assesse sold Flat within 2.5 years from purchase, he got Short term gains of Rs.6,00,000/- (After reducing cost of Renovation done on Flat of Rs. 2,00,000/-). He paid Tax on Gross Total Income as per Tax Slab. The renovations done by him were from many small time contractors, he have not retained all the receipts, also many of them have not issued receipts to him. All payments were made in cash or by bearer cheques. Also different kinds of renovations were done step-by-step in the span of 2.5 years. What can be done, if the File is under Scrutiny?
3 Replies
CA CS Bhumika Thakkar
(CA,CS)
(1618 Points)
Replied 24 October 2009
well..d bills need to be produced if under scrutiny...ask those contractors who did d work..for d bills...otherwise he cant claim cost of improvement...
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 24 October 2009
As the case is under scrutiny ...Definitely the IT people will demand for the supporting documents.......even the cheque payments ....requires the supporting bills..........
sowkhya
(articled assistant-CA Final(New))
(114 Points)
Replied 05 November 2009
produce those billls o receipts to claim cost of renovation
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