A person has acquired a land on or before 01/04/1981 by way of Gift/Partition.Now he wants to sell the land in Financial year-2012-13. To calculate the Value of cost of acquistion at inflated indexed price, first value as on 01/04/1981 is needed to be determined. If no value as on 01/04/1981 is available, in that case whether current municipal value of the land can be taken to determine the value as on 01/04/1981 by taking reverse inflation index??
In accordance with Sec 55(2)(b)(i) The assessee has an option to determine cost of acquisition as the fair market value of capital asset as on 1/4/1981 if the asset was acquired before 1/4/1981. there is no such provision to determine the cost of acquisition of capital asset on basis of current market price using reverse inflation index.
IS it possible to get the valuation (fair market valu) of land as on 1-4-1981 from the registered valuar.
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