Committed for Timely Service!

Wednesday 2 December 2020

Amenities cost can reduce capital gains on flat sale, rules tax tribunal

MUMBAI: In a litigation over capital gains arising on a flat sale Income-Tax Appellate Tribunal  (ITAT)’s Mumbai bench has held that the taxpayer can add the price paid for amenities to a builder’s group company to arrive at the total cost of acquisition of the property. 

The sale consideration minus the cost of acquisition (adjusted by applying the cost inflation index) determines capital gains. Higher the cost of acquisition, lower the taxable capital gains component. If the sale consideration is lower than the cost of acquisition, it results in a read more...

No comments:

Post a Comment