LTCG on Sale of Building

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This discussion clarifies how to calculate Long Term Capital Gains (LTCG) on the sale of a building, using the indexed value as of April 1st, 2001. While investing the proceeds in a ready-to-move residential flat can lead to nil tax liability, investing in agricultural land does not qualify for any tax exemption under these rules.

ATUL

ATUL (Querist)

23 March 2025 MY CLIENT (FARMER...HAVING AGRICULTURE LAND ) JOINT OWNER OF.............BLDG SINCE 1954

IF BLDG IS SOLD.............IN HIS SHARE GOT AMT

TO SAVE...LTCG

PARTLY INVEST IN........RESIDENTIAL FLAT (READY POSSEION)

& PARTLY AMT................USE FOR PURCHASE OF...........3 DIFFERENT.......AGRICULTURE LAND

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 March 2025 Calculate LTCG of the building based on indexed value as of circle rate of 01.04.2001. If the amount is invested in the new residential flat, the tax liability will be nil. Investment in agricultural land will not qualify for exemption.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 September 2025 Good luck....

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