i have an ancestral property and i have given it to a builder for construction and after the construction the builder has given me my share.and now i want to sell a flat from my property.and it is a long term capital gain and a sale of land and building.i can take the cost of the land as a fair market value as on 1/4/81.but i don't know what will be the treatment with the cost of the building.as i have got i my share.......
so can u please help me by telling about the cost of the building will be taken for computation of capital gain..
03 June 2012
First Cost of land & Building as on 1 April 81 is relevant only if you have got title of the property under a will or gift or partition before 1 April 81.
You have to determine indexed cost of acquisition for the year in which you first become the owner of the property or fair market value on 1 April 1981.
Apply % Share of your entitlement that builder has given to you. In this amount add the following:
Index the cost of construction of old premise and apply % share of your entitlement that builder has given to you.
Now this become the cost of the property under your possession.
Determine the % share of flat you transfered. Apply this % on the cost of the property under your possession.
Deduct it from the sales consideration. also deduct any expenditure on transfer.
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