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land value index

19 November 2017

ancestral property sold in 2017 60 lakhs how to calculate capital gain tax suppose bought land for 30 lakhs from the sale amount of 60 lakhs then how much capital gain

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195561 Points)
Replied 19 November 2017

For ancestral property, you can take actual purchase cost or market value as on 1st April, 2001.

When sold in 2017-18, you can deduct 2.72 times that cost as indexed purchase cost and remaining amount is long term capital gain.....

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Sunil Ahmad (Student) (1511 Points)
Replied 19 November 2017

Full Consideration.------------ 60,00,000
(-) Indexed cost of acquisition--
(Market value as on 1981 ×1125/100)
----------
Long term capital gain. __________
less: Exemption U/s 54
In case bought property was a 30,00,000
Residential house property.
(purchased within 2 yrs from
the date sale of ancestral Property.
--------
Total LTCG.

**Since it is an ancestral property and was transfered to your name via inheritance, the cost of acquisition shall be the cost to the previous owner. If the property was purchased prior to 1981, then market value will be for the year 1981. The indexation shall be on 1981 if it was purchased before 1981 or else the year in which it was actually purchased.

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Sunil Ahmad (Student) (1511 Points)
Replied 20 November 2017

From 2001.. The revised rates will be applicable from 1/4/ 2018and from the Assessment Year 2018-19 onwards.

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Sunil Ahmad (Student) (1511 Points)
Replied 21 November 2017

Dhirajalal Rambhia Sir is correct.😃

komalavilas ramachandran (5 Points)
Replied 21 November 2017

thank you, the property was inherited by partition deed in 1974 by my mother value shown for her portion was rs 5000. now she is no more. I and my two sisters are legal heirs now we have sold it for 60 lakhs how will the calculation be. also will we get exemption if we buy land alone without house

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195561 Points)
Replied 21 November 2017

For any capital gain........ you will have to arrive its fair market value as on 01.04.2001..... from approved valuer........ or from sub-registrar office.

No. exemption u/s. 54 will be available only if you purchase or construct a house property......