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LTCG on sale of house property

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Dr.Jyothish Vijay

189 Points Posted on 25 October 2020

I want to know how LTCG taxation needs to be calculated in the following scenario:

I suppose buy a land for 30 lakhs 5 years back, I construct a house in it (the amount spend is being kept private)and now sells it for 50 lakhs(the amount being a consolidate amount for both land and house together)....how is LTCG taxation applicable to me?

I have a basic idea of indexation of prices and stuff-not much. But thats not the point of the question. The point of the question is as far as LTCG implications of the house is concerned, there is no base price to begin with. I constructed the house. Lets say, i didn't keep records. How can LTCG tax be calculated for my house?

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Quick Summary

This discussion explores how to calculate Long Term Capital Gains (LTCG) tax when selling a property, particularly when a house was constructed on land purchased years ago. The core issue is determining the base cost for tax calculation, especially if original construction records are unavailable. Participants discuss the need for a government-registered valuer to establish the property's value at the time of construction for indexation purposes.