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Can I claim improvement cost done by my brother on my property?

T S Khurana

T S Khurana   |364 Answers  |Ask -

Tax Expert - Answered on Feb 17, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more
Asked by Anonymous - Feb 14, 2025Hindi
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sir, A individual it assessee Mr. X purchased Residential Flat for Rs. 15..50 lacs on 11-05-2019, cost of improvement (Like Paint the house, Purchased TV, AC, Fridge, Sofa, Furniture etc.) done in the same FY 2019-2020 amounting pay to Rs. 22.00 lacs by Mr. Y (Brother of Mr. X) and the above same Residential Flat held by Mr. X, sold for Rs. 50 lakhs f.y.24-25 Questions Assessee Mr. X Claim Cost of Improvement (which is done by brother Mr. Y) in his ITR

Ans: It is questionable to invest Rs.22.00 lakhs on improvement, on a Flat purchased for Rs.15.50 lakhs. Please note that Cost of certain movable assets or accessories i.e., TV, Fridge & Furniture etc., can not be considered as improvement (addition) to the Flat value.
Most welcome for any further clarifications. Thanks.
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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