residental property tax and tax saving

First You need to ascertain FMV as on 1 st April 2001.

Ascertain the fair market value as on 1st april 2001...than compute indexed value upto 2019....than as per section 50C compute the value for consideration and calculate the capital gain accordingly

you need to get the market valuation of your property as on Apr2001. then the market valuation or the cost of purchase whichever is higher shall be the cost which needs to be indexed and this amount needs to be deducted from the sale consideration received. the balance amount will be capital gains.this AMT you can invest either in capital gains bonds max up to 50lacs or in a residential property.

agreed with giridhar dir

TREATMENT TO BE DONE AS ABOVE ,, FIR CLARIFYING
ILLUSTRATION-
Mr. Mishra bought a plot of land for Rs.10,00,000 in the year 2005. After 10 years had elapsed, in January 2015, he sold off his land for Rs.30,00,000.

Cost Inflation Index, CII= Index for financial year 2014-15/Index for financial year 2005-2006 = 1024/480 = 2.13

Indexed cost of purchase = CII x Purchase Price = 2.13 x 10,00,000 = 21,30,000

Long-term capital gain = Selling Price – Indexed cost = 30,00,000 – 21,30,000 = Rs.8,70,000

Tax on capital gain = 20% of 8,70,000 = 1,74,000

thank you and congratulations