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Property purchase value acquired before 2001

1731 views 5 replies

Indira

1401 Points Posted on 03 September 2025

We have sold a property acquired before 2001. The sale deed shows Undivided share of land as 300 sqft and flat as 800 sqft. Per sqft value as per registrar is INR 1410 per sq ft. Now for the cost of acquisition do i consider (800 Sqft + 300Sq ft ) INR 1410 or only 800 Sqft INR 1410.

Anyone who knows the method please explain.

Thanks

Replies (5)

Quick Summary

When selling a property acquired before April 1, 2001, you can use either the original purchase cost or the Fair Market Value (FMV) as of April 1, 2001, whichever is higher, to determine your capital gains. The discussion clarifies that for calculating the cost of acquisition, the value of the flat (800 sqft) is generally applicable, rather than including the undivided share of land (300 sqft) unless separate costs are specified. This choice is crucial for accurately calculating your tax liability.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212282 Points Posted on 03 September 2025

Only 800 sq.ft.

V K Vijayaraghavan

PRACTICE FROM CHENNAI

240 Points Posted on 03 September 2025

Check also if there is separate costs has been mentioned for UDS and construction

sabyasachi mukherjee

Profession Business

28244 Points Posted on 04 September 2025

Since its dependable on your ownership.

800sqft of flat is applicable.

Indira

1401 Points Posted on 04 September 2025

No Separate cost is not mentioned. It says INR 1410 per sqft.

Dr. Sandra Lee

4 Points Posted on 04 September 2025

This is a great question. For property acquired before April 1, 2001, you have the option to use either the actual cost of acquisition or the Fair Market Value (FMV) as of April 1, 2001, whichever is higher, for calculating capital gains. It's a key rule for figuring out your tax liability.