Sir, I purchased land for Rs.1,20,000/- in the year 2009. Constructed house in 2016. The present value of land is Rs.5 lakhs and cost of construction is Rs.18 lakhs. I want to sell it is for Rs.30 lakhs. Please advise me the tax applicable to me.
whether proof is required to be shown for the cost of construction of house to determine the tax liability.
Proof for cost of construction not required at the time of filling of Return but later on Department can ask the same and if found not genuine the you may face problem and have to pay tax along with intransigence penalty
Thus plan accordingly
You can invest sales proceeds in new property to save tax
One more thing along with proof you have to shown source of income through which you made construction thus please also check your income and withdrawals in respective years
How much you have spent on construction and date/year of construction is required.
If you have proofs of construction then its fine or you need to take valuation report from approved valuer for assessing the cost.
Hello Sir,
You will have to maintain documentary proof such as Tax Invoices as well payments made to laborers for the construction of property.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hello,
Yes proofs like Invoices and bank payments or receipts will be required to claim cost of construction.
Regards
CA Keerthiga Padmanabhan
M.Com., CA, LLB
You will be liable to pay capital gain taxes.
Proof for cost of construction can be in the nature of invoice received by builder..payment made to builder etc.
