21 August 2015
Hello, I want to ask a questions regarding capital gain.
Actually one of my friend's grand father is having Residential House Property in Delhi which was allotted to him in 1947 at the time of Independence at Nil value or we can say he doesn't having any Cost of acquisition details with him, however he constructed a floor in 1988 which is duly registered with Authorities.
Now he wants to sell off his property.
now kindly suggest me how he calculate his capital gain, whether he should take cost of acquisition NIL or the fair market Value At 1/4/81 and take Cost of improvement in 1988.
according to me Cost of Acquisition should be NIL.