Base value to calculate capital gains 10 yrs after redevelopment of glat

As such 2012; provided the redeveloped flat was declared in ITR of 2012-13.

Cost of a flat received after redevelopment:

• On redevelopment, the new flat replaces your old one. Courts and tribunals have treated it as no fresh acquisition (no transfer of the old flat, or a transfer without consideration), so the cost and holding period of the original flat continue. The cost of the new flat = cost of the old flat plus any amount you paid for extra area.

• If you received a larger area by paying the developer, that portion has its own date and cost.

The starting point is generally the 1995 cost, not the flat’s ₹2 crore market value in 2012. Redevelopment and receipt of a replacement flat do not, by themselves, reset its cost to market value. Work out the capital-gains computation by carrying forward the original flat’s cost and adding any eligible redevelopment-related cost or consideration paid under the agreement, supported by records. The ₹2 crore 2012 value is not automatically the acquisition cost.

The exact computation depends on the redevelopment agreement and its terms—such as any cash received, extra area or amount paid—and on the applicable capital-gains rules for the transfer in 2025. The fact that the flat was self-occupied does not itself change its cost basis. Also verify the relevant tax regime and indexation treatment for the year of sale before finalising the computation.

A redevelopment sale calculation should begin by reconciling the original purchase documents with the redevelopment agreement and sale records. Manual tracking of these dates, payments and cost details is difficult; automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For support with compliance workflows, connect with us on WhatsApp https://wa.me/message/3HVOZ7HIY4ESC1.