expenditure considered on renovation of house for the purpose of exemption from capital gains tax

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  1. shaheenazk

    shaheenazk New Member

    As we are aware that if you sell property, the amount you spend in renovation of your house is exempt from capital gains tax. I would like to know that what expenditures incurred from capital gains money is exempted? E.g payments made to Labour, raw materials bought like bricks, cement, iron rods, paint, window, doors, water pipes, metal works, plumbing, electrification and painting etc., which of these are covered?
     
  2. Amit Sahni

    Amit Sahni Active Member

    All types of expenses incurred in renovation of the house would be considered.

    Labor expenses, material expense, water expense, door expense etc - each and every expense would be considered.

    However, you should have bills for all these expenses.
     
  3. shaheenazk

    shaheenazk New Member

    Thanks. Your prompt reply is deeply appreciated.
     
  4. king999maker

    king999maker Active Member

    i agree with Amit sahni these are considered as cost of improvement and benefit of indexation is also applicable
     
  5. shaheenazk

    shaheenazk New Member

    Thanks for the additional inputs.
     
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