14 December 2018
Dear all, Here is a query regarding LTCG on sale of residential house. A widow (below age of 80 years) sold her residential house during FY 2018-19. The same was purchased around 25 years back. After that some construction work was done. Purchase price (as per registered deed, 25 years back) is available but no cost is available regarding cost of construction. Please suggest how indexed cost (acquisition + construction) will be calculated & at what rate Income Tax is payable on LTCG? Any option to save her from Tax?
14 December 2018
We do not need to take our calculations based on values of the past 25 years.
You will have to get the property valued by a Valuation Officer or Registered valuer or overseer or surveyor or assessor can assess the value as on 01/04/2001. Most people prefer Registered valuer's report for this purpose.
Therefore, if the improvement was prior to 01/04/2001, then it will not affect our calculations as we will be considering the fair market value (which, of course, will take into consideration the improvement.)
CAclubindia
