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Help needed for LTCG on property sale

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Mac

Consultant

27 Points Posted on 18 December 2023

Hi All,

I had a property on lease-hold basis from 1995. In 2003 the same was converted to freehold by just paying registration charges to government.

In Current year I have sold the property for around 24lac

please help me how to calculate LTCG? which base year to consider? what will be the initial purchase price as the initial lease rent was just 6k per year?

also please suggest if I can claim LTCG benefits for purchasing a new property if I have already done the same in past

Replies (2)

Quick Summary

A property owner who converted their leasehold property to freehold in 2003 and recently sold it for £24 lakhs is seeking guidance on calculating Long Term Capital Gains (LTCG). They need to understand which base year to use, how to determine the initial purchase price given low lease rents, and whether they can claim LTCG benefits for purchasing a new property, having done so previously. Advice suggests using the Fair Market Value (FMV) as of April 1, 2001, indexed to the sale year, adding conversion costs as improvements, and noting restrictions on repeat Section 54 exemptions.

Mac

Consultant

27 Points Posted on 13 March 2024

Hi Forum members,

requesting your input for my query

thanks

Aashok Kumar Sharma

Finance/Compliance Consultant

78010 Points Posted on 04 November 2026

To compute the LTCG on a sale value of ₹24 Lakhs: Take the FMV as of April 1, 2001 (or actual cost) indexed to the year of sale, add the 2003 conversion registration fees as cost of improvement, subtract this indexed cost from the net sale proceeds, and note that repeat Section 54 exemptions for purchasing another property are restricted under current tax laws.