Long term capital gain

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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)

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)

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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