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POSTED BY ON November 21, 2013 8:14 am COMMENTS (8)
Hello!
Recently I sold my house for Rs. 59,92,000. This house was purchased by my mother in Jan.1992 for Rs.3,80,000.
Sir,what would be the Capital Gain and is it possible to reduce this capital gain by showing some renovation/extension or repairing works to the extent of Rs.10–15 Lacs on this house prior to it’s sale ? Advice pl.
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Dear Nsabhyankar, yes it’s Renovation year CII. Whatever you had spent in actual is eligible.
Thanks
Ashal
I will check it out…Thanks for the info.
hi Ashal,
just a doubt, should it be the ‘CII of year of Renovation’ in the second bracket, in the multiplier for the renovation amount?
Also, in this case, the renovations are substantial. However, are there any guidelines or rules to decide what kind of renovations / repairs can (not) be considered for LTCG calculation?
Dear Malik, let me give it to you. You need below things for LTCG calculation.
CII of 1992-93 FY
CII of year of Renovation
CII of sell year
Indexed purchase price = Purchase price * (sell CII/Purchase CII) + Renovation amount * (sell CII/Renovation CII)
LTCG = Sell price – Indexed purchase price
Here CII = Cost Inflation Index.
Thanks
Ashal
Thank You Sir….I will have to check what is LTCG calculation…my querry has not been answered complete…Request…I shall be thankful if you can give me an approx. figure of my Capital Gain that I will have to invest within a year.
Dear malik, in that case, Yes you may include repair and renovation work also in your LTCG calculation.
Thanks
Ashal
A lot of repair work was done…the house was not less than atleast 40 years old…lime contruction and load bearing walls…we removed the whole old plaster and got the entire house replastered with cement sand..some alterations also..I have withdrawals in my bank account to the extent of 9L…
Dear malik, was this renovation actually done or you want simply to use it for tax avoidance?
thanks
Ashal