Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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.

Kindly suggest me
Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 August 2015 Cost of acquisition of land is NIL. Cost of building is not an improvement to land,instead compute capital gains separately for land and building.

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2015 But sir there is a composite sale agreement for both land and building so how we proportionate the amount receuvable between land and building for the computation of capital gain.