Whether stamp duty cost cab included in cost of purchase of property for capital gain calculation

RAGHUNANDAN (Querist) 08 September 2015 This query is : Resolved
I have sold an open plot in Maharashtra for 167 laks and purchased a flat in Bangalore for total cost of 110 lacs which include stamp duty of 5.5 lacs, Registration fee of Rs.1 lac and permanent wood work cost of Rs.4.6 lacs.

Now the ITO says he will disallow the stamp duty, Regtn fee and wood work and will add back to Capital Gain and he will rework CGT which should be paid by me. This works out approximately additional 2.22 lacs which I feel is huge and I think ITO has erred in dis allowing these three items.

Please guide me and quote me IT Act or Law sections so that I can put up my representation.

Thanks in advance.

RAGHUNANDAN

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Anirudh (Expert) 08 September 2015
First indicate what is the amount of Long Term Capital Gain in your case.

P. Venu

(Expert) 09 September 2015
You may seek opinion from the CAclubofindia as well.

Guest (Expert) 09 September 2015
Stamp duty is included in the cost of the house.

Rajendra K Goyal (Expert) 09 September 2015
Consult local tax consultant and show him all the documents.

K.S.Srinivas (Expert) 09 September 2015
Better consult the Tax Consultant.

T. Kalaiselvan, Advocate (Expert) 17 September 2015
Your auditor or a local tax consultant will be having a better idea to this query.

H.M.Patnaik (Expert) 18 March 2016
Stamp duty forms part of cost of acquisition of a Capital Asset . If the Assessing Officer disallows the same on the face of strict evidence, then it can be challenged in appeal
in higher forum.
Before arriving at the Net Capital Gain , You to adopt the Cost Inflation Index in case of Long Term Capital Gain.
Better discuss these issues with any local tax consultant.

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