Deduction for cost of improvement in case of sale of plot

Hello Sir,

I am selling one of my plots admeasuring 4000 Sq. Ft. I have expended a huge sum on development / improvement (viz. Road, Drainage, Compound wall, Retaining Wall, Electricity) for the entire layout. My question is whether I can claim the deduction of the entire amount of improvement from the sale proceeds of only one plot. The layout contains total 5 plots (Total 20000 Sq. Ft.). But I am selling only one of them now. And when I will sell the remaining plots I will not claim any deduction for the cost of improvement. But can I claim the entire amount now , so that I will have the minimal tax liability for now. Your opinion is valuable for me. Kapil.

asked Jun 12 '11 at 02:53 by bannorerita 111


If the cost for improvement has been incurred on total 5 plots, then the cost must be divided in all these units. It will be unfair to claim it for a single unit.

answered Jun 13 '11 at 11:53 by pankaj 5.2k320

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Asked: Jun 12 '11 at 02:53

Seen: 828 times

Last updated: Jun 13 '11 at 11:53