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Capital Gain on Sale of Property

19 February 2020

We have ancestoral property bought in 1990 for Rs 60 thousand which got transferred through registered Relinquish Deed in July 2019 and I have sold it in Jan 2020 for 44 lacs ( stamp duty value is 28.50 lacs)

1. Will it attract LTCG or STCG.

2. In case of LTCG , how will FMV in 2001 will be calculated . Can we consider it as Rs 11 lacs based on our assumption on sale of similar property in vicinity.

3. In case STCG, what will be cost of property as same has been given without consideration

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6 Replies

rama krishnan (12234 Points)
Replied 19 February 2020

1. ltcg
2. get the fmv from territorial sro
3. not applicable

1 Like

Jatinder Singh Bedi (--) (38 Points)
Replied 20 February 2020

Sir

Thanks , What is territorial SRO. Can you guide for Delhi how to get the FMV , there were no circle rate available for 2001 as processes started in 2007.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 20 February 2020

The SRO in whose the subject property situated

Raghav Jhunjhunwala (51 Points)
Replied 21 February 2020

You can contant any government registered valuer for getting the FMV as on 01/04/2001 and take benefit on indexation as per the FMV on LTCG.

1 Like

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 15 April 2020

1.It will attract to LTCG

3.Not applicable

Suman (CMA) (195 Points)
Replied 17 April 2020

Any kind of property held by an individual, whether or not connected with the business of that person, is called Capital Asset. Any gains resulting from the purchase and sale of such capital assets is called Capital Gains. Based on the time period the individual posses the property (36 months or 3 years in India), it can be considered to be a short-term capital asset (resulting gain to be short-term capital gain) and long-term capital asset (resulting in long-term capital gain).