Dear Experts,
I am facing an issue in ITR-2 (Schedule CG) while reporting the sale of a land property (Immovable Property). The portal utility is failing to apply the indexed cost of acquisition to compute the final capital gain/loss.
Transaction Details:
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Purchase Date & Value: January 2010 | ₹30,00,000 (30 Lakhs)
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Sale Date & Value: July 2025 | ₹48,00,000 (48 Lakhs)
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Indexed Cost computed by portal: ~₹74,00,000 (74 Lakhs)
The Problem: After entering the original purchase value in the "Cost of acquisition without indexation" field, the portal successfully calculates and displays the "Cost of acquisition with indexation" as ₹74 Lakhs in section biia.
However, instead of using this ₹74 Lakhs to calculate a Long-Term Capital Loss (LTCL) of ₹26 Lakhs, the utility is mathematically calculating the gain using the unindexed cost (₹48L - ₹30L), showing a taxable LTCG gain of ₹18 Lakhs.
Since the property was acquired well before July 23, 2024, it is eligible for the 20% tax rate with indexation benefit.
Could you please advise if there is a specific checkbox, section toggle, or sequencing step I am missing in ITR-2 to force the system to consider the indexed cost (item biia) instead of the original cost for the final gain computation?
Thank you in advance for your guidance!
CAclubindia
