how to compute LTCG tax on sale of residential house
This query is : Open
31 August 2008
The following is the transaction details:
a) My father purchased land in 1975 for Rs.30000/- in joint names with my mother (i.e wife & husband)with his self earned money.
b)In 1990 he built a house of 3000 sft on the land he purchased in 1975both names( wife and Husband)
c)My father deceased now has left a will which states that the 50% share belonging to my mother stays as it is and the rest of 50% devolves in the name on son and daughter in law (25% each.)
My query is that I know the cost of land (COA)for the registered sale deed but I do not know the cost of construction for the house he constructed in 1990. There is no documentary proof bills for construction and imoprovement costs (COI)thereafter.I only have the property tax receipts. How to compute LTCGT assuming i am selling the property in the assesement year 2008-2009 and how to arrive at COI is there a benchmark given or how do i value the construction cost in 1990 and improvement thereafter.Please guide me and inform which websites or information I can get myself. Or please cite example or case study. Please not my e-mail id: mehulbpatel@hotmail.com
a) My father purchased land in 1975 for Rs.30000/- in joint names with my mother (i.e wife & husband)with his self earned money.
b)In 1990 he built a house of 3000 sft on the land he purchased in 1975both names( wife and Husband)
c)My father deceased now has left a will which states that the 50% share belonging to my mother stays as it is and the rest of 50% devolves in the name on son and daughter in law (25% each.)
My query is that I know the cost of land (COA)for the registered sale deed but I do not know the cost of construction for the house he constructed in 1990. There is no documentary proof bills for construction and imoprovement costs (COI)thereafter.I only have the property tax receipts. How to compute LTCGT assuming i am selling the property in the assesement year 2008-2009 and how to arrive at COI is there a benchmark given or how do i value the construction cost in 1990 and improvement thereafter.Please guide me and inform which websites or information I can get myself. Or please cite example or case study. Please not my e-mail id: mehulbpatel@hotmail.com
31 August 2008
BETTER TO OBTAIN A VALUATION REPORT FROM AN APPROVED VALUER FOR THE COST OF THE SAID BUILDING CONSTRUCTED IN 1990. SIMILAR REPORT MAY BE OBTAINED FOR THE COST OF IMPROVEMENTS ALSO. INDEX THE COST WITH COST INFLATION INDEX. DEDUCT THE INDEXED COST FROM THE SALE CONSIDERATION AND BALANCE IS LTCG.
31 August 2008
thanks Mr.B Chakrapani for your reply.For my knowledge is there any benchmark with the govt has laid down for valuation of structures per sq ft year wise, or the Sub Registar office will have info as they give land value of previous years or is there any web site or any bench mark followed by the IT dept.Thanks once again
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