cost of acquisition

HI ,

All the above costs shall be indexed except the following:

1. Electrical and Meter charges

2. Gas connection charges

Apart from this, can you give more idea about the nature of following expenses so as to determine whether they will be indexed or not :

1. Development Charges

2. Cetcorpus Fund

Thanks

Damini

To claim any cost incurred against the sales consideration, then the same should qualify the fact that it has made addition to the property.

With respect to furniture and fixtures, if there are furnishings which are immoveable and inbuilt, then they will be considered as cost as they cannot be sold separately.

However, moveable furnitures shall not be considered.

Thanks

Damini

Hi,

Prima facie looking at the details, Cost mentioned in Agreement (Agreement Cost), Registration Charges, Cost of Garage (if the same is sold along with the property within the registered sale deed) can only be capitalized and used for indexation purposes.

However, if the other charges like you mentioned Extra paid for Steel Grills, POP Ceilings and Development Charge are paid within a short period of acquisition of property and can be justified through proper documents, can also be capitalized and used for indexation purposes.

Other Charges viz. Legal Fees, Electrical and Meter Charges, Gas Connection Charges, Society formation charges, Cetcorpus fund (whatever it is), Health Club and Swimming Pool charges cannot be used for indexation purposes.

Please remember, any cost which substantially increases the value of house can be clubbed as cost of acquisition of major improvement. Other Charges would be considered as maintenance charges which are part and parcel of routine care taking of the property.

I hope it is clear to you.

Regards,

Hi,

All the above costs will be eligible for indexation except the electrical and meter charges and gas connection charges.

Also for the rest, i am assuming that ypu have valid supportings for the amount spent.

Any money you spend on permanent improvements or fixed furniture and fixtures will also be eligible for indexation as they are considered to be the cost of the property.

Hope that clarifies.

Regards,

Nikhil.

Dear Sir,

All expenses of capital nature can be included in the cost of acquisition. Except electrical and meter charges, forming of society formation charges, gas connection charges all other costs can be capitalized and indexed. I am not aware of cetcorpus fund.

Cost of furniture will be excluded from the cost of acquisition. Any cost incurred to make the property ready for living is acceptable. Costs incurred for luxurious lifestyle will be excluded.

Thanks

In my opinion, all these charges paid at the time of buying the house can b considered as cost of acquisition.

Yes, furniture cost can be termed as cost of improvement.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Electrical and meter charges, gas connection charges cannot be considered as part of cost of acquisition. If stamp duty payment was claimed as deduction under 80C in the year of purchase, it cannot form part of cost of acquisition.

All fixed furnishings shall be included in cost of acquisition.

all charges except amenities ,society formation,connection charges ,electrical and meter charges.

As per my opinion cost of furnishing can be included in cost of improvement and hence index benefit can be claimed on it.

Hello,

Agreement Cost, Registration Charges, Cost of Garage, Legal Fees, form part of your Cost of Acquisition.

Steel Grills, House Interior form part of Cost of Improvement.

Society maintenance, etc cannot be included anywhere.

Trust this clarifies your query.

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

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP