Definitely @lovely_bala!
1. The cost/basis is the purchase price in India (then translate it to USD using the date it was purchased, IRS recommends using spot rate and Oanda.com is a good place for that - also checkout: IRS International Taxpayers)
2. The cost basis can be adjusted by adding improvements, costs associated with the sale of the home (including the travel expenses, commission expenses). If you do not have the original documentation to prove these expenses, you can trace them by searching in your bank statements, credit card statements for previous years. In case of an audit the IRS will request for specific documents or any form of document to prove that the expense was a reasonable one in nature.
Hope this helps,
Laura
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