Capital gain on property sale
This query is : Resolved
15 August 2020
Dear Sir
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
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.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- ITR 2 Short Term gain & Long term gain
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- ITR selection for salaries and capital gain less than L
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR validation error - Balance sheet is not filled
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
