I filed my ITR for AY 2019-20 but made a mistake. How can I rectify it? – The Economic Times

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  • Last Updated on 28 October, 2020
I bought a plot in 1996 and constructed a house on it in 1997-98. I added another floor to it in 2003-04. I have no record of the construction costs. How should I compute the capital gains tax if I sell the house?
Rakesh Bhargava Director, Taxmann replies: 
You can add the cost incurred on building the new floor to the cost of acquisition of the property only if you have evidence to show that you incurred the costs. As this property is a long-term capital asset, you have the option of assuming the market value as on 1 April 2001 as its cost of acquisition. This cost can be further adjusted on the basis of the cost-inflation index for the financial year in which the property is sold. You can then subtract this indexed cost of purchase from the selling price of the property to arrive at the capital gain. 

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