Hi
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
Only 800 sq.ft.
Check also if there is separate costs has been mentioned for UDS and construction
Since its dependable on your ownership.
800sqft of flat is applicable.
No Separate cost is not mentioned. It says INR 1410 per sqft.
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.
CAclubindia
