QUERY RELATED TO INDEXATION ON SALE OF IMMOVABLE PROPERTY

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This query is : Resolved

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This discussion addresses whether taxpayers can opt out of indexation benefits when calculating long-term capital gains tax on immovable property sales. While it's possible to pay tax without indexation, the Income Tax Return (ITR) filing system often automatically calculates indexed costs. The advice provided suggests submitting grievances to the tax authorities to enable filing without indexation, or strategically entering purchase dates to minimise the indexation period.

Komal

Komal (Querist)
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22 September 2022 My Query is that whether any Taxpayer who has earned Long Term Capital Gain / Long Term Capital Loss from the sale of a immovable property can pay tax without taking the benefit of indexation on the purchase value of the property.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 September 2022 Yes you can do it no problem.

Komal

Komal (Querist)
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25 September 2022 When I proceed to file the long term capital gain on the immovable property in the ITR then the ITR does not give any option to claim the cost without indexation since the ITR mechanism automatically calculates indexed cost upon the basis of date of sale & purchase. So please tell me the manner how to claim the cost without indexation in the ITR.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 September 2022 Give date of purchase three years prior to sale date indexation will be done for short period.
Submit grievances they will allow you to file without indexation.

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