Claiming deduction

I sold a property for 1 crore 
Invested 50lakhs on buying 20 year old apartment and spent 30 Lakshmi for renovation
I have clear bills for 20 Lakhs spend for civil work and another 10 Lakhs for designing

My question is, is it possible for claiming deduction from capital gain on both purchase and renovation
Asked 11 months ago in Capital Gains Tax from Chennai, Tamil Nadu
Dear sir,

It is not possible to take capital gain deduction for renovation work.

It is only possible in case of purchase or new construction.

Thanks and Regards
Abhishek Dugar
CA, CS, B.Com
Abhishek Dugar
CA, Mumbai
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No, not in case of sale of property. This relaxations only available in case of listed securities.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA, CS, B.Com
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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As you spent on renovating the house, which is capital in nature, you can claim deduction as cost of improvement of the house while calculating income taxable under the head ‘capital gain’. Further, since the house has been held for more than 36 months, it would be treated as a long-term capital asset. In such a case, indexation benefit shall also be available on the cost of improvement, starting the year in which the cost was incurred.
Shyam Sunder Modani
CA, Hyderabad
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YES YOU CAN
Shyam Sunder Modani
CA, Hyderabad
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Dear Sir,

This is a litigative manner as you will have to show cause how the cost of improvement is the cost of purchase in order to set it off against your Capital Gains.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
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Yes claim deduction from capital gain on both purchase and renovation
Anuj Agarwal
CA, Aligarh
34 Answers
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