Capital Gain - Clarification- req

Pls provide date of purchase and value of property on purchase date by your grandfather.

Feb 27,1987 for Rs. 1,35,000/-

Type of property? residential or agricultural

Residential Property and a small correction Property value is Rs.1,86,000/-

Valuation around 1,710,655 Rs(if no renovation or improvement of property). for find correct value you should find ready reckoner rate 1 April 2001 of property.

Thank you for your reply

Try to ascertain the value of property from the concerned SRO or from registered property valuer as on 01/04/2001. that would be the cost of acquisition of the property. by applying index value, calculate the indexed cost of acquisition. the difference between the net sale consideration and the indexed cost of acquisition would be the capital gains earned from the property (if there's no improvement cost). 1/6th of capital gains is your share of capital gains income on which you are required to pay capital gains tax at 20%. in order to claim deduction on capital gains, you are required to invest your share of the capital gains amount in residential property within 2 years in case of purchase or within 3 years in case of construction, from the date of sale of the original property. otherwise invest in specified bonds mentioned in section 54EC for a lock in period of 5 years to claim deduction on capital gains

Thank you sir for your clarification..I will try to ascertain the value accordingly..