House property

There is no need to pay tax on the entire sale consideration received. From the sale consideration the person can deduct any brokerage paid with respect to sales, Indexed cost of acquisition and Indexed cost of improvement.
Indexed cost of acquisition means cost of purchase of house * cost of inflation index at the year of sale/ cost of inflation index at the year of purchase (if purchase is made before 2001 then value as on 2001 can be taken). you can get cost of inflation index chart at Google. Subsequently after purchase if the house has been renovated the amount so expended can be deducted under indexed cost of improvement in the same way as acquisition. Sale consideration received left over after all these deductions will only be taxable.

Regards.

As far as I could understand by the given facts..I think you are asking about income tax treatment of the sale proceeds the assessee receives upon selling the said house properly. Firstly the said income will be chargeable u/h Capital Gains and not u/h house property. Now the Capital gains/(loss) as the case may be, is needed to be calculated in accordance with provisions of Section 48 of IT Act, 1961.
Illustrative computation of capital gain is as follows:
Since the period of holding in your case exceed 24 months then such sale is subject to Long Term Capital gains which may be computed as

Long Term Capital Gain =Sale Proceeds - Indexed Cost of Cost of Acquisition - Indexed Cost of Improvements( if any).

I hope it would be helpful..

Thanks for quick response.