Capital gain calculation

With regard to construction done in 2000 you don't need to produce any proof since the base year for capital gain has been changed to 2001-2002 so just get a valuer to value your construction as on 2001 and you can keep it as proof of construction now the construction done in 2009 I would suggest if you can find your contractor and get a duplicate bill from him it would be good because I won't suggest you to claim an expense for which you don't have supporting documents or else you can get the contractor write on a notarized statement that he has made construction of so much amount and he has shown such income in his return, only then it would be safe to calculate/ include it in cost.

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Thank you

Hi,

The construction done before 1.4.2001 is irrelevant. You can directly consider the faur market value (FMV) of house as on 1.4.2001 which will take care of the construction cost.

For construction done in 2009, you can get it valued from a registered valuer. Valuai report is a fair proof of cost of construction.

Hope this clarifies your concern.

Hi,

You just need to get Fair market value of house as on 01.04.2001 and value report from registered valuer for construction done in 2009.

We may help you for the same.

Thanks & Regards,

Payal Chhajed

Hi,

1. You will have to derive the FMV of the property as on 1.4.2001.

For construction done in 2009, you will have to separately take a valuation report from registered valuer.

Hi,

You will have to get the FMV of the property done as on 1.4.2001.For construction done in 2009, you can separately get a valuation report from a registered valuer - that should take care of tge construction cost incurred by you.

Regards,

Nikhil.

Hi,

For Construction done before 2000-get the Fair market value as on 01.04.2000.

For construction done in 2009- option valuation report from valuer.

Hi,

- Get FMV as on 01.04.2001 and valuation report for the construction cost in 2009.

Thanks

Hi,

You can reduce capital gain if your construction cost in 2009 is valued significantly.

Further, we you can reduce any selling expenses from the sale value.

Also let me make it clear that, suppose your capital gain is 100 and if you invest 40 in cgds, you will get exemption of 40. If you invest 100, exemption will be 100.

If you invest 120, then also exemption will be 100. There is no use of depositing more amount

While calculating capital gain you can reduce any selling exepet incurred. Further, it also depends upon the valuation of your construction in 2009.

Why would you deposit more than capital gain amount is cgds. If you deposit amount equivalent to capital gain, your entire capital gain will be exempt.

Hi,

These exemption are deductible from the total sale price:

1. Brokerage and commission paid for securing purchaser

2. Cost of stamp papers

3. Traveling expenses in connection with the transfer.

You can deduct all above expenses from selling price.

There is no extra benefit with regards to more deposit in capital gain account.

Thanks & Regards,

Payal Chhajed

Hi,

- Under cost, you can consider the cost of registration of property and cost of improvement if any made to the house property.

- You can deduct selling expenses from the sale consideration.

- Law considers sale consideration not less than circle rate.

Thanks

You can do it but we can't suggest it here you can mail me.

No, only the amount claimed as exemption from capital gain will be taxable as capital gain even if you invest more amount in capital gain account than the amount of capital gain.

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Thank you

Hi,

There is no point depositing more in the Capital gains savings account as the maximum exemption is limited to the amount of capital gains. As far as reducing your capital gains is concerned, you can deduct the selling expenses incurred like brokerage and commission from the sale proceeds.

Regards,

Nikhil

You can deduct the selling expenses incurred like brokerage and commission from the sale proceeds.

There is no use of depositing more amount.

Hi

Get the FMV of property as on 01.04.2001 for all the cost incurred prior to this period and Get property valuation done for 2009 form registered valuer.

Maximum exemption is limited to amount of capital gain only so why to deposit more in CGS account.