Is GST included for calculation indexed cost of acquisition?

Dear Ram,

Hope you are doing well !!

No, it won't be part of cost of acquisition.

Hi Ram

The property taxes won't form part of cost of acquisition.

The entire cost shall be allowed as exemption. It will also include brokerage and other charges involved in acquisition of a property.

The cost of modifications and alterations shall not be available if you buy a ready to move in property. However, they will be treated as cost of improvements when you sell this property.

No you can't claim property tax because only that cost which one needs to pay for the purchase of property forms part of cost and as property tax is not required for purchase it is just regular cost you can't include it in cost for calculating capital gain.

GST is not applicable on sale of property.

Yes modification and furniture cost can be added if you have proper bill and proof.

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Thank you

Hi,

- Property tax is paid for a particular financial year and the benefits of it get dissolved after the completion of the year. Therefore value of property tax does not form part of the cost of the asset.

- Cost will include cost of acquisition as per the sale deed, stamp duty charges, registration charges, GST, brokerage and interest paid on loan to clear the mortgage before sale. Additions and modifications will not be added as they take place after the purchase of the property. If the property is ready to move in and habitable at the time of purchase then additions would not be allowed. It will be subject to litigation.

Thanks

Hi Ram,

Property tax paid over many years would not be part of cost of acquisition.

No. There is no issue. The exemption shall be available.

No problem if there is a proper nexus between sale value received and investment made.

Hi,

Cost of Acquisition (COA) means any capital expense at the time of acquiring capital asset under transfer, i.e., to include the purchase price, expenses incurred up to acquiring date in the form of registration, storage, stamp duty GST etc. expenses incurred on completing transfer.

Further, you can add additions and modifications if you have separate agreement and bills but it is subject to litigation.

There will be no issue.

You can claim exemption.

There will be no issue.

You can claim exemption.

There will be no issue.

You can claim exemption.

There will be no issue.

You can claim exemption.

Hi,

No, there is not issue in getting capital gains exemption.

It wont create any problem.

Yes, you can include everything in cost of acquisition subject to certain conditions.

(Sale value as per sale deed, registration, stamp duty, GST, additions and modifications, furnishing and fixtures).

Hello,

Expenditure incurred on the acquisition of property are included in Cost of Acquisition.

Property tax made over the years won't form part of the cost of acquisition.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Yes, you can claim expenditure incurred on the acquisition of the property as Cost of acquisition, Cost as per sale deed, Stamp Duty and other registration charges, GST, brokerage paid for the purchase of the property. However, expenditure on additions/modifications or furniture would be available subject to certain conditions.

And purchasing new property in joint names won't affect the claim for capital gain exemption.

No.