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Capital gain on sale of ancestors property

Prateek Bansal (Article) (41 Points)

27 July 2014

I have an ancestor residential property about 90yrs old. Last yr i sold it for 14 lakhs. How will i calculate the cost of acquisition to calculate LTCG on it? I have no idea about the old circle rates of 1987.. Is there anyway to self calculate the cost of acquisition of that property, since the return filing date is quite near? Please help me in this issue

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5 Replies

Prateek Bansal (Article) (41 Points)
Replied 27 July 2014

*by mistake i wrote 1987..i meant to write 1981

sahil (nil) (48 Points)
Replied 27 July 2014

You need a Govt Regd. Valuer to find cost of aquisition for year 1981..Let it be 'xyz'

Indexed cost of aquisition is xyz multiplied by 9.39

long term capital gain = sell amount -indexed cost of aquisition

Tax @ 20 % on LTCG

Prateek Bansal (Article) (41 Points)
Replied 27 July 2014

Sir, that's what i want to know whether is there any way of self calculation of value, as only 3 days are left to file the return so i want to file the return. So i want a method of self calculating the cost of acquisition

Mihir (Wealth Manager) (5293 Points)
Replied 27 July 2014

In case your file is opened by the IT dept and demanded an explanation about the basis of cost of acquisition, then you may show the certificate of a registered valuer.

sahil (nil) (48 Points)
Replied 27 July 2014

there is no method of self calculating cost of aquisition of land for yeay 1981.

surrounding land, near by areas sold in that year needs to be found out , then find rate at which that land was sold from govt talati/corporation. make average of that. & there are about 25-30 questions(criteria) that Govt.Regd Valuer asks before making valuation,he visits land & surrounding area. Based on criteria, Average rate,& location of land, Govt Regd Valuer makes cost of aquisition of land for that year.

common man cannot make cost of aquisition & even he makes value is not reliable because he is unqualified & unregistered to do so...