Long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2012 Hi All,

My uncle purchased a house property consisting of half portion of vacate land during the F.Y 1992-93 for Rs.3,50,000/- as per Registration consideration shown as 1,30,000/- only. he build a house property in such vacate land in F.Y.1995-96 and sold such newly constructed part only during F.Y 2011-12. Total land value can be assumed as 3,00,000/-
now while calculating LTCG I wanna take land acquistion cost basing on Registered value i.e., on 1,30,000/- rather on actuals.
Am I correct ? Plz advise...

Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 February 2012 You can not assume total value of the land.
.
You have to consider the value proportionately to the unbuilt area.
.

Further , the total consideration of 130000/-includes constructed house cost+ vacant land cost.
.
You have to consider
1. Indexed cost of part of the land (in respect to FY 1992-93 CII)
2. Indexed Cost of Improvement i.e. construction ( W.r. to CII of 1995-96).
.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2012 Thanks alot sir, even I considered Index value, my doubt is I considered acquisition cost basing on Registered value rather actual consideration paid by my uncle whether my treatment is right or wrong.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 February 2012 Yes, whatever "on" has been paid is off hte record. You have to consider the Registered Document value. If it is inclusive with constructed house , segregate approximate cost of house from it.

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