Are stamp duty registration on pagdi flat part indexing for arriving at acquisition cost

Are stamp duty registration on pagdi flat part indexing for arriving at acquisition cost

Pagdi system is recognised under the Rent Control Act 1999.
There is a flat bought 10 years ago where No official purchase consideration was paid. Only Stamp Duty, Registration and Brokerage paid officially by the tenant during its purchase.
Plus, there was a major repair work carried out some 2 or 4 years ago which was officially paid by tenant.

During this property's transfer, which of the above costs can the tenant include for indexing to arrive at cost of acquisition and use that for Capital Gains Calculation ?

Asked 5 years ago in Capital Gains Tax

Hi,

He can take indexation benefit on Stamp Duty, Registration and Brokerage.

Also, you can also add indexed cost of repair work subject to certain conditions.

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed

CA, Mumbai

5189 Answers

302 Consultations

Talk to Payal Chhajed

Hii

amount mentioned in transfer document (if any) can consider for calculating cost of purchase

because 10 years back no restriction on cash purchase of property

Lalit Bansal

CA, Delhi

776 Answers

61 Consultations

Talk to Lalit Bansal

You can take the amount mentioned in the deed as your cost of acquisition and index the same.

You can take benefit of repair work provided you have proper bills supporting the same.

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

Thank you.

Naman Maloo

CA, Jaipur

4303 Answers

101 Consultations

Talk to Naman Maloo

Hello,

The amount as mentioned in the registration deed, Stamp Duty, REgistration and Brokerage Charges would be considered as the Cost of Acquisition. Any capital expenditure incurred with proper proof would be the cost of the improvement.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani