• Registration value or acquisition cost for capital gains

I purchased a semi finished flat in 2007 for 13.5 Lakhs and gave construction agreement (granite, electrical, extra fittings, internal works and wood works) for 1.8 Lakhs. Sale deed registered value contain only these 13.5L + 1.8L = 15.3L. On top of this I also gave gave work order (on stamp paper) to builder to complete the house with flooring, doors, windows, kitchen, cupboards, bath fittings etc. for approx an additional 36 Lakhs. This 36L is not part of the registration value in the sale deed. Out of this total purchase value of 15L + 36L = 51+ lakhs bank gave 38 lakhs as loan disbursed directly to the builder and I don't have any receipts for the work carried out for the 36L. I now sold this property in Nov 2019. Can I include the 36L work order into the cost of acquisition? Will there be any objections from IT? If yes, what kind of questions may arise? I only have work order copy and details of bank disbursement to the builder.
Asked 1 month ago in Capital Gains Tax



Yes, you can claim the same as cost of acquisition/ improvement.

Work order and bank disbursements would be sufficient to prove the same.

Lakshita Bhandari
CA, Mumbai
5367 Answers
440 Consultations

5.0 on 5.0

Dear Sir,


Hope you are doing well !!


Yes, it would be sufficient for the same.


So, you can claim the same as cost of acquisition/ improvement..


Karishma Chhajer
CA, Jodhpur
2341 Answers
15 Consultations

5.0 on 5.0

- Rs.36 lacs will treated as cost of improvement and allowed as deduction from the net sale consideration. Apply indexation to the cost of improvement. Copy of work order and bank payments will support your claim if case will be picked up for scrutiny. If possible collect copy of invoices from the builder.


- Cost of acquisition will be value in the sale deed.


- If benefit of interest on housing loan was not taken u/s 24(b) or under any other section, you can consider it under cost of acquisition.

Vivek Kumar Arora
CA, Delhi
3936 Answers
294 Consultations

5.0 on 5.0

Dear Sir,


Hope you are doing well !!


-Yes, you can  include work order cost  into the cost of acquisition.


-No, there would be no objections from IT.


-Work order copy and details of bank disbursement to the builder would be sufficient.






Payal Chhajed
CA, Mumbai
5010 Answers
120 Consultations

5.0 on 5.0

Yes. You can include cost of improvements in the cost of acquisition. You have to work out indexation on year wise improvements. Its also necessary that you should have proper documentary evidences to support your expenditure on improvements.  

B Vijaya Kumar
CA, Hyderabad
921 Answers
83 Consultations

5.0 on 5.0

Yes you can if you have proper bills and since your sale consideration would be depending on these factors.


Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.

Thank you.

Naman Maloo
CA, Jaipur
3751 Answers
43 Consultations

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