Property sell consideration is less than indexed acquisition cost. Is it capital loss?

Hello,
My friend purchased a house in May 2011 for 21,00,000 INR.
He sold the house in June 2023 for 30,00,000 INR.

Cost Inflation Index in May 2011 = 184
Cost Inflation Index in June 2023 = 348

Indexed cost of acquisition = 21,00,000 x (348/184) = 39,71,730

Sell consideration - Indexed cost of acquisition
= 30,00,000 - 39,71,730
= - 9,71,730

Does this mean he can book a capital loss of 9,71,730 INR and can offset it against capital gain?

Thanks in advance for your inputs.

Replies (4)
Quick Summary
A homeowner sold a property for less than its inflation-adjusted acquisition cost. The discussion clarifies that this difference is indeed a capital loss, not just if the sale price is lower than the original purchase price. This long-term capital loss can be offset against long-term capital gains.

Your assumptions are correct...

Long term capital loss can be set-off only against Long term capital gains

The cause of the confusion was previously someone told me that it is considered a loss only if sell consideration is less than original cost of acquisition (NOT indexed cost of acquisition). 

Thank you Mr. Dhirajlal for clearing out my confusion.

You are welcome.  

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