How to calculate capital gains on selling a self built house

Manoharji,

Since the house was built up in 2003, it is a LTCG. The cost shall be indexed using indexes of 2003 year. The receipts are mandatory though, the A.O. at the time of assessment may ask for the proof of payments and expenses towards acquisition or improvements.

Also, you can use the cap gains money for buying a new house within 1 year backwards the date of transfer, 3 years from  the date of transfer (in case of self-construction) or 2 years forwards from date of transfer. Then your cap gains shall be exempt from tax.

Regards

Prateek 

Agreed with Prateek ji

Dear Mr.Manohar,

You certainly need receipts to justify const of construction before tax authorities. 

Alternatively, I suggest you to get the valuation of construction done from the Govt.approved valuer for the date of completion of construction. The value as per valuation report shall be taken as the cost of construction and to be used for indexation. The valuation report will assist you to substantiate the cost of construction in absence of bills for construction.