Indexed Value for LTCG

Summary of Steps

1. Obtain a Valuation Report: Hire a registered valuer to determine the Fair Market Value (FMV) of the property as of April 1, 2001.

2. Gather Records: Keep copies of the original lease premium, the conversion fee receipts, and any records of construction or major improvements.

3. Use the CII Table: Use the official Income Tax Department CII table to find the indices for 2001-02 and the year you sell the property.

4. Compare: Calculate the tax using both the 12.5% (no indexation) and 20% (with indexation) methods to choose the one that saves you the most money.