Dear Experts,
How does one calculate the base value of an old property for LTCG?
The value given by a certified valuation expert does not take into account the premium for the property.
As per current estimated market value vs actual sale price - the premium is 150%.
Can I apply this same premium on the 2001 property value, to arrive at a fair base price?
Example:
Property purchased in 1980 for 20,000
Property sold in 2018 for 75,00,000.
But estimated value of the property in 2018 as per ready reckoner is only 50,00,000.
Estimated Value of property in 2001 as per ready reckoner is 11,47,000.
Should the LTCG be calculated on 11,47,000? Or can I apply the current premium over ready reackoner value, and assume it to be 17,20,500.
Request clarity on this from an expert.
Thank you.
CAclubindia
