| Question And Answer | |
|---|---|
| Subject: | Regarding Allowability of Cost of Improvement Expenditure while computing tax liability |
| Category: | Income-Tax |
| Querist: | Kartik Bijwani |
| Answered by: | Reply of the Expert is awaited; |
| Tags: | Business expenditure |
| Date: | July 15, 2024 |
Case Description
Mr. X (Resident Individual, aged 42 Years) purchased Residential Flat for Rs. 11.50 lakhs on 11-05-2017, cost of improvement (Like Paint the house, Purchased TV, AC, Fridge, Sofa, Furniture etc.) done in the same FY 2017-18 amounting to Rs. 20.00 lakhs by Mr. Y (Brother of Mr. X, Living in Joint Family) and the above same Residential Flat held by Mr. X, sold for Rs. 45.00 lakhs on 13-07-2024.
Questions
- Can Mr. X Claim Cost of Improvement (which is done by brother Mr. Y) in his ITR ?
- If Answer to 1 is yes, what if Mr. Y don’t have any documentary evidence regarding the expenses done on Cost of Improvement (Like Paint the house, AC, TV, Fridge, Sofa, Furniture etc.)?
Reply of the Expert is awaited. Please check back later
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