I had purchased a property in 1976. I sold this property in 2020. How do i calculate capital gain as CII is applicable from 2001. Do I need to hire approved valuer to calculate cost of property in 2001 ? Pl advise. Thanks
15 August 2020
Dear Mr. Rajinder Kapoor Ji You can take the actual purchase price of the property in 1976 as the cost of the Capital asset as on 01/04/2001and then indexed accordingly to calculate capital gain. Also, you can take Fair Market Value as on 01/04/2001 as the cost of Capital assets for purpose of Calculating capital gain. This required help of a registered valuer.
Advice: As per Income Tax Act, 1961, if the property is purchased before 01/04/2001, the Cost of Asset will be Original cost of Acquisition or Fair Market Value of 01/04/2001 at the option of assessee. After deciding Cost of Asset Index of 2001-02 will be taken for indexation purpose.
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