LTCG - reg

Take the base year for indexation as 2001 because the property was built by your father in 1985. 

For calculation of Capital gain, the cost of the previous owner is indexed to determine the profit or loss on the sale of the property.

As mentioned above, you don't know the price spent for the construction of the property. Since the property was acquired by your father prior to 1 April 2001, there is an option of taking the actual cost of acquisition or fair market value as on 1 April 2001 for calculating the indexed cost of the property. 

Addition to above I would like to add that , You find out the value of property as on 1/4/2001 for indexation cost from Sub registrar office or from Government registered valuer for. capital gains .

Capital gains
1) Cost of aquisition as on 1/4/2001
2) Cost of Inflation Index for the year 2001
3) Cost of Inflation Index for the year 2022 ( property transfer )

Thanks

Originally posted by : prasad Nilugal
	Addition to above I would like to add that , You find out the value of property as on 1/4/2001 for indexation cost from Sub registrar office or from Government registered valuer for. capital gains .Capital gains 1) Cost of aquisition as on 1/4/20012) Cost of Inflation Index for the year 20013) Cost of Inflation Index for the year 2022 ( property transfer )

Hello Prasad, 
How do we get the value of the property as on 1/04/2001 from sub-registrar office 
1) if there are no transactions in this area around that time period (2000-2001)? will any back dated transaction be good? OR can any transaction in the neighourhood (surrounding areas)?
2) What kind of formal document should be take for this valuation so that there will be no doubts for Income Tax guys? 
Thanks