LTCG on selling a property (plot) which was bought below circle rate

Tax queries 254 views 4 replies

Vanshaj Agarwal

5 Points Joined May 2022

Hi All,

I could not find answer to one of my query while searching on this forum s i am posting a question here as below:

I have purchased a plot within local development authority boundaries of my city on 22nd Feb 2012 for 1500000 INR but the circle rate value of plot at that time was 2750000 INR. We paid stamp duty charges as per circle rate value at that time.

I have now sold the plot on 8th April 2022 for 6750000 INR (current circle rate value of plot is also 6750000 INR). Now while calculating the LTCG (Long term capital gain), the original non-indexed purchase price should be considered as 1500000 INR + stamp duty or 2750000 INR + stamp duty?

Replies (4)

sabyasachi mukherjee

28018 Points Joined May 2017

Indexation on the total cost including stamp charges and the value of the land to be given.
Sold the plot for 67.5 lacs. long term Capital gain .

Vanshaj Agarwal

5 Points Joined May 2022

Vanshaj Agarwal

5 Points Joined May 2022

Originally posted by : sabyasachi mukherjee
	Indexation on the total cost including stamp charges and the value of the land to be given.Sold the plot for 67.5 lacs. long term Capital gain .

So indexation will be calculated on 1500000 + stamp duty charge? or 2750000 + stamp duty charge?

rama krishnan

12244 Points Joined May 2017

INDEXATION have to be made on document value if you have not admitted the difference between the circle rate and document value as your income in your ITR for respective assessment year. one more thing is that you need to prove with material evidence that the property was purchased for circle rate