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ITR filing - LTCG setoff with STCL- Property purchase price unknown

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Ramesh Saraf

4 Points Posted on 12 May 2026

I sold a property in April 2026, which was acquired by my grandfather in 1956, no buy/purchase deed and purchase cost is available

I am unable to get FMV Certificate from valuers as it is very rural property and valuers ask for heavy fee which is not affordable (in view of transaction value)

My grandfather died in 1970, and father died in 1993 & I am a senior citizen

I sold my share of the property in April 2026 for Rs 8 lakhs

Now I want to know can I assume purchase price at Rs 1 only as of year 1956, and claim Rs 19000 towards renovation during year 1993

Can I get indexation benefits on Rs.1 or Rs. 19001 as above, I have already invested Rs 7.1 lakhs in REC Capital Gains Bonds, is it enough or i should invest full amount of Rs 8 lakhs. Further, I have STCL (on sale of shares) during same year of Rs 1 lakh

Pl suggest what to do in this case

Thanks in Advance 🙏

Replies (3)

Quick Summary

For inherited rural property sold in FY2026-27, taxpayers may use the fair market value or circle rate as on April 1, 2001 as the cost basis for LTCG calculation. STCL from shares can be set off against gains, and REC bonds may help claim capital gains exemption.

Aashok FC Advisory

Finance Compliance Consultant

939 Points Posted on 12 May 2026

You should use the April 1, 2001 Circle Rate as your cost basis rather than Re. 1 to minimize tax. Your Rs 1 lakh Short-Term Capital Loss can be legally set off against the property gains. Ensure your investment in REC bonds covers the final calculated Long-Term Capital Gain to remain tax-exempt.