Semi-furnished registered flat was sold

Even if you took a loan of 10 lakh then also income tax officer would take purchase price as 4.5 lakh. However you can show rest 5.5 lakh as cost of improvement if you have bills to prove the same. As you had taken loan for 10 lakh you might have used it for house only.

You must have proper bills to claim the cost you incurred during these 15 years. 

If you have made multiple improvement then you can easily index all the cost separately and claim them easily if you have proper bills.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

- Under cost of acquisition, only purchase cost as per registered sale deed and interest on housing loan will be considered subject to no other benefit of interest on housing loan was availed by you under other income tax provisions. Rs. 10 lacs will not be considered as cost.

- For cost of improvements, maintain invoices to claim them. Mere entries in the bank account will not be sufficient. 

- Also obtain valuation report from the registered value of the current date as supplementary proof for justification of claim of improvements.

Thanks

Hi,

- It depends on the total cost of the property and the ratio of improvement carried on. If it is minimal then it should not be much of problem. You can not the help of case laws in favour of the assessee's in such matters.

Thanks

Your cost of property would be taken as per the amount mentioned in the deed and you just need to index it.

As far as loan amount goes since you have taken loan of 10 lakh whereas the property was for less amount and in case of home loan generally the payment is made directly to the builder so here also if the builder had accepted 10 lakh whereas deed is of 4.5 lakh ask him to provide bills of balance amount.

Also it is a bit difficult to claim cost of improvement without bills, if the people who did the work for you if you still have contact with them ask them to give you back dated bills for the work they have done or last thing get a notarized statement of them that they had done work for you for so much amount by accepting cheque number____ and it has been shown in their return of income.

Please call

Hi Rajesh,

Hope you are doing well !!

1. The cost of property would be registered value of property.

2. You will have to use only the registered price.

3. You can take the benefit of indexation on cost of improvement subject to proper bills.

Thanks & Regards,

Payal Chhajed

Generally I believe a reasonable percentage of the sale value should be acceptable to the AO even without bills. If the expense incurred is material in nature then obviously bills/vouchers should be available like commissions paid to brokers etc., as the amount will be comparatively material.

However,You can get valuation report from the Engineer/Approved valuer for estimated cost of construction.

This is very subjective and depend on case to case basis and assessing officer may or may not fully allow your claim or may refer to the valuation officer for determining the cost.

Hi Rajesh

1. The registration amount shall be considered as cost of acquisition. Remaining amount utilized out of 10 lacs shall form part of cost of improvements.

2. You should possess proofs of payments and relevant invoices.

3. The COA shall be indexed from FY 03-04. Remaining cost of improvements shall be indexed from there respective years of improvements.

If you're not having the bills, you may resort to get a valuation of the property done. It should be done by a registered valuer.

If you're not having the bills, you may resort to get a valuation of the property done. It should be done by a registered valuer.

If you're not having the bills, you may resort to get a valuation of the property done. It should be done by a registered valuer.

Dear Sir,

The cost of registration should be considered as cost of acquisition.

However, remaining amount should be considered as cost of improvements subject to proper bills.

COA should be index from FY 2003-04 and COI should be index from there respective years off improvements.

Better to have valuation report from certified valuer for estimated cost of construction.

Hi

Cost of acquisation will be the value as per the registered sale deed.

Since you donot have the bills for cost of improvement,you can get the valuation done and get the price as of today.