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LTCG ON SALE ON LAND AND BUILIDNG

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Mr. CHATTERJEE

service

42 Points Posted on 26 November 2020

If I sold a house (land and building) at 18 Lakh in FY 2021-22 and stamp duty value is 20.5 Lakh as at FY 2021-22.

Whether I can consider as Capital loss and utilize the money without paying any capital gain?

(else how can I easily calculate capital gains)

Details of land and building :

1. constructed building as on FY 1993-94.

2. stamp duty value as of 1-4-2001 is unknown.

Replies (7)

Quick Summary

This discussion explores Capital Gains Tax (LTCG) implications when selling a property. It addresses a scenario where the sale price (18 Lakh) is lower than the stamp duty value (20.5 Lakh) for FY 2021-22. The consensus is that Section 50C will apply, treating the sale consideration as the stamp duty value (or 110% of the sale price, whichever is higher), potentially leading to LTCG. Calculating the original cost of acquisition, especially for properties purchased before April 1, 2001, is highlighted as a challenge, with a certified valuer's report recommended for establishing this cost and enabling indexation benefits.

veerendar singh

tax consultant

3306 Points Posted on 27 November 2020

One thing for sure is that s. 50C would apply in this case and your sale consideration will be 20.5 lacs instead of 18 lacs

Aman Verma

209 Points Posted on 27 November 2020

Hi even if you sell it at 18 L you will have to pay LTCG as under section 50 C the diff between sdv and sale consideration shall not exceed 10% so in this case 18L *110% = 19.8 L while computing LTCG 20 L would be considered as Sale consideration ..
For LTCG please specify the purchase price as indexation will apply taking year 2000-2001 as base year

Mr. CHATTERJEE

service

42 Points Posted on 27 November 2020

Thanks, both of you. I need to know how easily I can calculate the cost of acquisitions as of 1-4-2001. It is old property documentation of building cost that has not been done.

(e.g. stamp duty as of 1-4-2001 and from where I can get the stamp duty)

veerendar singh

tax consultant

3306 Points Posted on 27 November 2020

You need to get the property valued by a certified valuer. you may approach any CA or Advocate. They might have some valuer in their contact. the valuer will give value for the year 2000-01 and thereafter you will get indexation benefit.