Ltcg calculation for properties bought before 1980

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How can I calculate LTCG for my residential property sold as per details below:

1. Bought the house in 1975 for 40,000.

2. Sold the house in  Jan, 2013 for Rs 11 lacs.

 

Replies (4)

As par my Knowledge..

In the given senario , You Should Follow the below proceedure

Sale Consideration   =  11 Lacs

Less: Exp. on Transfer =  (xxx)

Net Sale Consideration     xxxx

Less: Indexed COI             NIL

Less: Indexed COA*         (xxx)

LTCG                       =      xxxx

 

Note:- It is to be noted that Indexation  rates for F.Y. year 1975-1976 (before 1981) were not available so you have to come at Year 1981 by adopting FMV of the Said Capital Asset & its Beneficial for the Assessee himself, & you should also be careful about the Cost of Inflation which had been made upto 1981,Since FMV covers it  itself, So in that Situation Cost of Inflation should be ignored.   

 

you need to have FMV of 1-4-1981 of your house than simple index it and deduct with all the expenses on transfer from sale consideration

Please refer for your better understanding:

https://www.indiantaxupdates.com/2012/12/31/brief-note-on-taxability-of-capital-gains/

You have to ascertain FMV of your house as on 01.04.1981; that can be done through a registered valuer or if you have instensces and proof of sale of properties in the same area then the FMV of the house can be computed accordingly.

Dear Mr. Nagar

 

first you should have a registered valuer certificate for value as on 01/04/1981 this is must for the purpose of calculation of LTCG on sale of your house.

 

than caluclate the capital gain as suggested by parveen parjapat (above mentined).

 

but it is apparently looks from your figures that there would not be any tax liability on you.

 


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