Aniket (Others) (37 Points)
03 July 2017I have a query about calculation of LTCG.
1. Property under question is residential flat built in 1994 and was alloted to me under development agreement between builder and me. THe land originally belonged to me. No money was exchanged in the contract.
2. I sold the flat recently in 2016.
My question is how to arrive at purchase price in such case?
Should I consider market value as on 1994 or municipal valuation of the same flat in 1994 or construction cost or any other measure?
Thanks!
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(161074 Points)
Replied 03 July 2017
Different options can be tried........... but any valuation certificate from Municipal authority about the value of the property as on 1994 would be more authentic.........
Aniket
(Others)
(37 Points)
Replied 04 July 2017
Thanks!
May be purchase agreements of others in the same building can be used as reference for prevailing at that time market value? Also ready reckoner rate at that time can be another reference point.
Do you think construction cost in 1994 would become basis for purchase price in such cases?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(161074 Points)
Replied 04 July 2017
Only construction cost will not help, as it will not include the cost of land........
Another option is based on development agreement, but it will be more tedious way. Rather than that go for valuation certificate from Government valuer, which cannot be questioned otherwise .....
CAclubindia
