Cost of land included in residential house cost for capital gains deduction when plot purchase and construction are timely completed. When an assessee constructs a residential house within the statutory period, the cost of the land is an integral part of the cost of the house; amounts appropriated towards purchase of a plot and construction thereon may be aggregated to determine the deduction under the capital gains exemption, provided acquisition of the plot and construction are completed within the prescribed time limits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Cost of land included in residential house cost for capital gains deduction when plot purchase and construction are timely completed.
When an assessee constructs a residential house within the statutory period, the cost of the land is an integral part of the cost of the house; amounts appropriated towards purchase of a plot and construction thereon may be aggregated to determine the deduction under the capital gains exemption, provided acquisition of the plot and construction are completed within the prescribed time limits.
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