ITR filing - LTCG setoff with STCL- Property purchase price unknown

This query is : Resolved

Ramesh Saraf (Querist)
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12 May 2026 Hi,
I sold a property in April 2026, which was acquired by my grandfather in 1956, no buy/purchase deed and purchase cost is available

I am unable to get FMV Certificate from valuers as it is very rural property and valuers ask for heavy fee which is not affordable (in view of transaction value)

My grandfather died in 1970, and father died in 1993 & I am a senior citizen

I sold my share of the property in April 2026 for Rs 8 lakhs

Now I want to know can I assume purchase price at Rs 1 only as of year 1956, and claim Rs 19000 towards renovation during year 1993

Can I get indexation benefits on Rs.1 or Rs. 19001 as above, I have already invested Rs 7.1 lakhs in REC Capital Gains Bonds, is it enough or i should invest full amount of Rs 8 lakhs. Further, I have STCL (on sale of shares) during same year of Rs 1 lakh

Pl suggest what to do in this case
Thanks in Advance 🙏

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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12 May 2026 Don't use ₹1: Get the 2001 Circle Rate from the local registrar; it will significantly lower your "gain" on paper.
Ignore 1993 costs: Improvements prior to 2001 cannot be claimed separately.
Investment is sufficient: Since you invested ₹7.1 lakhs in Bonds and have a ₹1 lakh STCL to set off, your tax liability for this transaction will effectively be Nil.
Filing: Report the sale in ITR-2 (or ITR-3 if you have business income), showing the FMV as of 2001, the indexation, the STCL set-off, and the Section 54EC exemption.

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