My father and Myself sold a ancestral property jointly having FMV on 01/04/2001 1,58,000/- for 5,25,000/- on October 2018. this property was occupied a years ago by unknown people and it was not possible to evict them . so it resulted in the property having low sale value . the problem is that stamp duty value on October 2018 was 25,00,000/-
This might result in very large tax demand .
Are there any remedies to avoid such demand?
Thanks in advance,
Ganesh.
yes you can index the cost of asset by applying the index of 2018-19 to 2001 as follows
158000*280/100=424000.
So this amount will get deducted from the stamp value and you will have long term capital gain of 2057600. however you can save tax by investing it in residential property. if you are unable to invest in property before filing your return, then you can deposit the CG in capital gains tax deposit account and then afterwards within 3 years utilize the amount deposited in buying property.
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