Long term Capital Gain

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Kamal Bhojwani (Querist)
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20 December 2020 My father had purchased a Land through Agreement to Sale in Feb 2000 for R's. 1,40,000 and constructed a house later (no bills available). The property was in our possession since then. Registration was finally done in March 18 with FMV of property of R's. 43 lacs n stamp duty of Rs 3 lacs paid. Subsequently, my father passed away n property was transferred to my mother who sold the property in May 19 for R's 45 lacs. Few questions or clarification :
1. Date of acquisition should be in Feb 2000 and not Mar 18 and hence this is LTCG not STCG. Please confirm
2. I believe we should have a FMV as on Apr 2001 and then calculate the indexed cost of Acquisition till the time of sale for calculating LTCG.
3. Can we instead rely on FMV done in March 18 for calculating LTCG.
4. Even if we do FMV as on Apr 2001, What happens if Indexed cost of acquisition is marginally different than what was FMV as on Mar 18.
5. How to claim deduction of stamp duty of R's 3 lacs incurred in Mar 18. Should this be indexed as well?

Plz help.

CA Ankith Jain

CA Ankith Jain (Expert)
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20 December 2020 1. Yes date of acquisition is Feb 2000 and therefore LTCG. 2. Yes, at your option, you could take FMV as on April 2001 or actual cost of acquisition, whichever is beneficial to you. 3. No you cannot rely on FMV as on Mar 18 for calculation of LTCG. 4. You only need to ignore the FMV as on Mar 18, there will be a difference for sure. 5. You couldn't do indexation on stamp duty as it is still a short term cost. For any queries you could contact caankithjain@gmail.com.

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