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Long term capial gains sales of property

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ANIL KUMAR KHETAN

PROPRIETOR

552 Points Posted on 22 February 2023

property construction complete fy 2001-02 . But present time after demolished the construction and sale the only land . Index cost of land only or property construction cost and land cost . Pleas sutabile advice me for pupose of long ter capital gains

Replies (3)

Quick Summary

This discussion explores how to calculate long-term capital gains tax when selling land after a property has been demolished. The key question is whether the indexed cost for tax purposes includes only the land value or also the original construction and demolition costs. Advice suggests that construction and demolition costs can be included if they relate to the property sold, particularly when the land was acquired before April 1st, 2001.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 22 February 2023

Pls post actual figures.

CA Nitin K. Varshney

FCA DISA CCA Peer Reviewer (ICAI)

616 Points Posted on 22 February 2023

you can take indexation of construction cost of building and even also for demolition cost of building for the calculation of capital gain, if it belongs to the same property which has been sold.

ANIL KUMAR KHETAN

PROPRIETOR

552 Points Posted on 23 February 2023

Land purchase fy 1963 -64 and construction completed before 1stApil 2001 . At the present time before sale of Immovable Property construction demolished and sale only land . Computation of Long term capital gains only basis of land cost as on 1st April 2001 or both land or construction cost of 1st April 2001 . Please advise on this point.