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Ancestral property capital gain
A family of 6 (3+3) has sold an ancestral house aged more than 80 years old for 6 lakhs and shared the proceeds equally among them. No further details or documents about the house are available with the family members. Under the above circumstances how to calculate capital gain in the above case.
Replies (4)
You have to take year 2001, as base year for Cost of Indexation and for Calculation of Capital Gain .
Take valuation report from redg. valuer from incometax dept. as on 1/4/2001
apply indexation to that value
apply cost incurred for transfer
apply additions of improvement before indexation
divide amount equally distributed
that will be capital gain of each
apply deductions in investment if any
tax will be 20 percent on capital gain if any after specified investment
apply indexation to that value
apply cost incurred for transfer
apply additions of improvement before indexation
divide amount equally distributed
that will be capital gain of each
apply deductions in investment if any
tax will be 20 percent on capital gain if any after specified investment
You have to Find out the Value of Said property in 2001, from registered Valuer.
Take FMV as in 01.04.2001 as purchase value.
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