Assets sold less than market value

For calculating long-term capital gains tax, you need to consider the higher of the two values: the actual sale price or the market value of the property.

 Long-term capital gains tax is calculated as follows: - Fair Market Value (FMV) - Cost of Acquisition (COA) = Long-term capital gains - FMV is the higher of the actual sale price or the market value of the property If you sold the property for less than the market value, you will still need to consider the market value for calculating the long-term capital gains tax.

 For example: -

 Actual sale price: ₹80 lakh - Market value: ₹1 crore - COA: ₹60 lakh In this case, the long-term capital gains would be: - FMV (�1 crore) - COA (�60 lakh) = ₹40 lakh

You will need to pay long-term capital gains tax on ₹40 lakh. However, if you sold the property to a relative or a specific person as per the Income-tax Act, 1961, you may need to consider the actual sale price for calculating the long-term capital gains tax.