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Capital Gains Tax: Are Conveyance, Utility, and External Development Charges Included?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 26, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Deepak Question by Deepak on Aug 09, 2024Hindi
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Can I include the following in cost of acquisition for calculating capital gain Tax 1. Conveyance Deed Charges 2. External Development Charges 3. Infrastructural Development Charges 4. Enhanced External Development Charges 5. Park Facing 6. Utility Connection Charges 7. Electrification & STP Charges 8. Stamp Duty Charges 9. Registration Charges Deepak

Ans: You need to consult a CA or a tax advisor for written feedback on these aspects, that can be furnished to IT department in case of a query.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Hardik

Hardik Parikh  | Answer  |Ask -

Tax, Mutual Fund Expert - Answered on Jul 23, 2023

Asked by Anonymous - Jul 20, 2023Hindi
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Hellow Sir, In February, 2023 I had sold a House Property and there is Capital Gain around 15.00 lakh. From the sale proceed I received, I have already bought a housing plot(land) costing Rs.11.00 Lakh, in May, 2023, in a Govt. approved scheme and this has also been registered in my favour. All other formalities for its mutation has also been completed. Since I am planning to construct house on this newly acquired Plot in next 2 years, kindly guide:- (1)whether the amount already incurred in acquiring above Housing Plot would also be considered against utilization of Capital Gain ? (2)the amount I have to kept in the Capital Gain Account Scheme for utilization during construction of House shall be Rs.15.00 Lakh OR Rs.4.00 Lakh (after deducting cost of Plot i.e. Rs.11.00 Lakh) ? Kindly Guide Regards !
Ans: Hello,

I understand your situation and I'm here to help. Based on the details you've provided and the current tax laws in India, here's what you need to know:

1) The amount you've spent on acquiring the housing plot can indeed be considered for the utilization of your capital gain. As per the Income Tax Act, if you reinvest the capital gains from the sale of a property in buying a new property or constructing a new house, you can claim tax exemption on the capital gains.

2) The amount you need to keep in the Capital Gain Account Scheme (CGAS) would be the remaining amount after deducting the cost of the plot from the capital gain. In your case, if you've already spent Rs. 11.00 Lakh on the plot, you would need to keep Rs. 4.00 Lakh (Rs. 15.00 Lakh - Rs. 11.00 Lakh) in the CGAS. This amount should be utilized for the construction of the house within the specified time period, which is 3 years from the date of sale of the original property.

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Tejas

Tejas Chokshi  | Answer  |Ask -

Tax Expert - Answered on Aug 07, 2023

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Sir, during this month (August2023) I sold my flat which was purchased by me in 2010. The total sale consideration as per govt guidelines was Rs 5973000/ and was registered at that amount, accordingly TDS at 1% on it was deducted at Rs 59730 and was credited to the govt account. My query is , TDS on sale of property at 1% is applicable in case the amount of sale exceeds Rs 50.00 lakhs . Whether the TDS is applicable on full sale consideration or on the difference amount ie, (5973000-500000)Rs 973000. 2. I had purchased the flat in April 2010 and the purchase price was Rs 3150000/ including Stamp duty, Registration charges and small amount towards interior work. I request you to advise me the applicability of Capital Gain Tax on it. Now I do not want to invest in any new property or in Capital gain bonds, I want to pay the applicable tax and close the transaction. Please advise me about the applicable Tax and close the formalities applicable in this regard. Siddramappa Kudarimoti.
Ans: The TDS (Tax Deducted at Source) of 1% on the sale of property exceeding Rs 50 lakhs is applicable on the full sale consideration. In your case, since the total sale consideration was Rs 5,973,000, the TDS of Rs 59,730 was deducted as per the guidelines. Based on the information you've provided, you might be liable for Capital Gains Tax. Capital Gains Tax is calculated based on the difference between the selling price and the indexed purchase price. The indexed purchase price adjusts the original purchase price for inflation over the holding period.
The tax on long-term capital gains is usually 20% (plus applicable surcharge and cess) after considering any exemptions or deductions available under Section 54 or Section 54F if you are not investing in another property or capital gains bonds.

To close the transaction and fulfill your tax obligations, you should consider the following steps:

a. Calculate Capital Gains: As explained above, calculate the capital gains based on the indexed purchase price and selling price.

b. Pay Capital Gains Tax: If you decide not to invest in another property or capital gains bonds, you will need to pay the applicable capital gains tax. You can do this by filling out the appropriate sections in your income tax return and paying the tax amount.

c. File Income Tax Return: Ensure that you accurately report the capital gains in your income tax return for the assessment year.

d. Keep Documentation: Maintain all relevant documents related to the property sale, purchase, and tax calculations for future reference

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Nayagam P

Nayagam P P  |7095 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Career
Sir i got 99.81 percentile in MHTCET general. And 97.3 percentile in jee mains. Is it possible to get admission in VJTI IT OR CS branch or the latest COEP AIML branch. Other than this should i consider that my SPIT mumbai CS is confirmed??
Ans: Soham, With a 99.81 percentile in MHTCET and 97.3 percentile in JEE Main, you surpass the MHTCET closing percentile for VJTI Information Technology (99.71) but fall just short of the Computer Engineering cutoff (99.83), making IT admission very likely and CS borderline. COEP’s B.Tech in Robotics & Artificial Intelligence (AI-ML) closed between 99.75 and 99.79 for general candidates, and your score places you marginally above that range. SPIT Mumbai’s Computer Science closing percentile was 99.32–99.38, so your SPIT CS admission through MHTCET is effectively secured. Over the past three years, VJTI IT branch placements were 100% in 2020, 98% in 2023, and 83% in 2024; SPIT CS consistently achieves over 90% placement annually; and COEP’s overall undergraduate placement rates were 69.15%, 77.37%, and 73.35% in the last three cycles.

The recommendation is to treat SPIT CS as your secure option, prioritise VJTI IT for robust IT foundations, pursue COEP AI-ML if you aim for an AI-focused career, and consider VJTI CS as a stretch given its marginal cutoff gap to balance placement potential and specialization goals. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7095 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Asked by Anonymous - Jun 25, 2025Hindi
Career
Sir my daughter got into PDEU Gandhinagar electrical engineering and CSE in Ahmedabad University which college should I opt to or should I wait for branch upgradation In PDEU for ECE in PDEU
Ans: Academic Reputation: PDEU holds stronger national recognition with NAAC A++ accreditation versus Ahmedabad University's NAAC A grade. PDEU's NIRF ranking in engineering (101-150) surpasses Ahmedabad University's overall ranking of 151.

Placement Performance: While PDEU shows superior overall placement rates (90% vs 97% claimed by Ahmedabad University), the branch-specific analysis reveals significant differences. PDEU's electrical engineering provides more reliable placement outcomes compared to its ECE branch, while Ahmedabad University's CSE offers better career prospects in the technology sector despite variable placement statistics.

Infrastructure and Campus Life: Both institutions provide excellent infrastructure, though PDEU's larger 100-acre campus and comprehensive facilities receive higher student ratings. PDEU's energy-focused research environment and industry partnerships with companies like Reliance, ONGC, and Adani provide unique advantages.

Career Prospects: Electrical engineering at PDEU aligns with traditional core engineering career paths in power systems, renewable energy, and manufacturing sectors. CSE at Ahmedabad University opens opportunities in software development, artificial intelligence, and emerging technology domains with higher growth potential and salary prospects.

Branch Upgrade Feasibility
The branch upgrade from electrical to ECE at PDEU presents significant risks given ECE's poor placement performance (30-40% vs 90% electrical). The upgrade process requires maintaining strong academic performance and depends on seat availability, making it uncertain.

The recommendation is to choose Ahmedabad University's CSE program over PDEU Gandhinagar's electrical engineering, despite PDEU's stronger institutional reputation. CSE offers superior long-term career prospects, higher salary potential, and better industry alignment with current market demands, while electrical engineering at PDEU, though more reliable for placements, provides limited growth opportunities. Waiting for ECE upgrade at PDEU is not advisable given the branch's poor placement record and uncertain upgrade prospects. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7095 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Asked by Anonymous - Jun 25, 2025Hindi
Career
Please help I got rank 14500 at srmjeee phase 2 I am getting Mechatronics ,Nanotechnology ,Ece in srm main campus I want cse but i don't think will will get it in main campus I don't have any idea about the other campuses please guide me
Ans: With rank 14,500 in SRMJEEE Phase 2, you have strong opportunities for CSE across multiple SRM campuses while securing good branches at the main campus. SRM operates six primary campuses: Kattankulathur (main Chennai campus), Ramapuram, Vadapalani (both in Chennai), Ghaziabad (Delhi-NCR), plus sister universities in Amaravati (Andhra Pradesh), Sikkim, and Haryana. Your rank positions you at the boundary between main campus non-CSE branches and CSE availability at other campuses.

Main Campus Analysis: SRM Kattankulathur's CSE cutoff typically closes around 8,000-9,000 rank, making CSE unlikely at your rank. However, you're well-positioned for Mechatronics (closing around 42,000-48,000), ECE (22,000-27,000), and Nanotechnology (around 70,000).

Alternative Campus Options: SRM Ramapuram offers CSE up to rank 65,000 with excellent placement records—100% placement for the past six years, with recent highest packages of 26.4 LPA for CSE 2025 batch. SRM Ghaziabad (Delhi-NCR) accepts CSE students up to rank 54,000 and provides proximity to Delhi's tech ecosystem. SRM Amaravati achieved 100% CSE placements in 2021 with average package of 7.05 LPA. SRM Sikkim offers CSE with 85% overall placement rate and growing industry connections.

Placement Comparison: While main campus placements are premium, Ramapuram maintains competitive records with 1,136 CSE students registered in 2025, achieving 705 placements. Other campuses provide good industry exposure—Amaravati's first CSE batch secured 100% placements with 71% in super dream/dream offers, and Sikkim reported 91% placements in 2019-20.

The recommendation is to secure CSE at SRM Ramapuram or Ghaziabad over main campus Mechatronics/ECE/Nanotechnology, as CSE offers broader career flexibility, higher industry demand, and these campuses maintain strong placement records with dedicated industry partnerships while providing similar SRM brand value and curriculum standards. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7095 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Nayagam P

Nayagam P P  |7095 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Asked by Anonymous - Jun 25, 2025Hindi
Career
Madicap university indore or sage university indore or will I get better in Pune I scored 85.5%ile in jee mains
Ans: Medi-Caps University Indore stands out for its modern infrastructure, diverse engineering programs, and robust placement support, with 70–80% placement rates over the last three years and near 100% in CSE/IT, though core branches see fewer opportunities; it is ranked among the top private universities in Madhya Pradesh and has shown steady growth in national rankings. SAGE University Indore, NAAC A+ accredited, offers a vibrant campus and holistic development, but its placement record is less consistent, with around 60–80% placement rates, and student reviews note some discrepancies between claimed and actual outcomes. In contrast, top engineering colleges in Pune such as COEP, VIT, and MIT WPU, which accept JEE Main scores, consistently rank higher nationally, offer superior infrastructure, and regularly achieve placement rates above 90%, with some colleges like Army Institute of Technology and Bharati Vidyapeeth reporting 91–100% placements in recent years. With your 85.5 percentile in JEE Mains, you stand a realistic chance at several reputable Pune colleges, which would provide stronger academic exposure, better industry connections, and more reliable placement outcomes. The recommendation is to prioritize securing admission in a top-tier Pune engineering college over Medi-Caps or SAGE University Indore for a more advantageous career trajectory. All the BEST for the Admission & a Prosperous Future!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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