Capital gain tax on Property purchased in the year 1986

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Vilas (Querist)
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30 November 2024 Open plot is purchased in the year 1986 for Rs. 20,000/- and house is constructed on it spending Rs. 20.00 lakh. Thus total acquisition cost is Rs. 20.20 lakh. Now this property is to be sold for Rs. 201.00 lakh. Whether it will be beneficial to opt for indexation benefit or to opt without indexation benefit. If Indexation benefit is opted how to arrive at cost after indexation. Present index is 363 considering the base year as 2001, but the property is purchased prior to 2001 i.e. in the year 1986

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 November 2024 Get valuation of the property as on 01.04.2001 from Registered valuer or Sub-registrar office & consider it as COA for either option. If valuation is Rs. 40L or more, indexation will be beneficial.

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