New Delhi, July 11 -- A one-time maintenance deposit paid to a builder, electricity and water deposits, and even home loan interest that has not been claimed as a deduction earlier can form part of a property's cost of acquisition while computing long-term capital gains (LTCG), the Income Tax Appellate Tribunal (ITAT), Bengaluru, has ruled in a relief for a non-resident Indian (NRI).

The ruling came in the case of Santanu Arun Nandi, an NRI who sold a residential property in Bengaluru for about Rs.2.63 crore in January 2020. In his income tax return for assessment year 2020-21, he declared LTCG of Rs.16.33 lakh after claiming indexed cost of acquisition and several expenses connected with the property. However, the Income Tax Department ...