Question And Answer
Subject: Capital gains from sale of residential property
Querist: Pemba Tshering
Answered by:
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Date: December 7, 2022
Query asked by Pemba Tshering

Joint property bet. me and wife bought @32 lacs on December 2008. For Improvement spend about 8-10 lacs but no supporting bills as was done during 2009 over a period of one year. Now sold property @120 lacs on August 2022 and 10 lacs received separately by cheque towards fixtures and fillings. What will be the  capital gains??

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With respect to the immovable property, the 120 lacs will be the full value of consideration received and 32 lacs will be the cost of acquisition. If the expenses can be supported by bank statements, the same may be claimed as cost of improvement. Further, these costs can be adjusted against inflation. The capital gain will be long term capital gains.

Furniture being personal effects , the amount received is not liable to capital gain tax. Refer , Faiz Murtaza Ali v. CIT (2013) 214 Taxman 30 / 85 DTR 33 / (2014) 360 ITR 200 (Delhi)(HC)

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