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Cost of acquisition for LTCG on sale of HP.

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Anil Kumar Singh

51 Points Posted on 04 January 2024

Pl ignore my earlier query on this issue.
Sale of flat in Nov 2023 for 70,00,000 /-.
Acquired prior to 1.4.2001.
Redeveloped in FY 2015-16. No money paid on redevelopment.
For computation of LTCG what will be cost of acquisition...
1. Value as on 1.4.2001

Or

2. Value as on the date of redevelopment.

Replies (3)

Quick Summary

This discussion clarifies the cost of acquisition for calculating Long Term Capital Gains (LTCG) on the sale of a home property that was redeveloped. The core question is whether to use the property's value as of 1st April 2001 or the date of redevelopment when no funds were paid for the redevelopment itself. The consensus leans towards using the 1st April 2001 value as the basis for computation.

CA Raj Doshi

Practising CA

8954 Points Posted on 04 January 2024

I feel logically it should be value as on 01.04.2001. Since recent high court judgment has taken a view that the amount paid to tenant by builder is a capital receipt not chargeable to tax as it is towards alternate accommodation

Rgds-CA. Raj Doshi-R C D & Co.-Chartered Accountants- Kandivali West-Mumbai