01 July 2015
Obtain fair market value of the property on 1.4.1981 from a Govt. registered valuer and use that as the cost of the property to find the indexed cost of acquisition.
Full consideration xx Less: Brokerage paid (xx) Indexed cost = Cost x 1024/100 (xx) Indexed cost of improvement (if any) (xx) = LTCG xx
Cost of improvement is capital expenditure incurred in any year for improving the value of the property like changing the floor tiles, etc. which adds value to the property. But you should have bills for such expenditure otherwise you cannot get deduction for such expenditure.
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