sale of building

As per ammendment in income tax act. now u have to consider value of building as on 01.04.2001. Then multiply that value with 280 and divide it by 100. the value arrived is to be subtracted from sale amount. Balance amount is Profit(LTCG) and taxable at 20%.

For Ex.

Value of building is 5,00,000.00  on 01.04.2001(as per valuation report) then 500000*280/100= 1400000.00(is consider as purchase cost), now 6500000-1400000=5100000.00 is consider as profit and taxable @ 20%. 1020000.00 is tax amount.

Depending on what u purchased nd what u actually spent..

Like if u purchased half connstructed building or plot then u can add construction cost.. but if u purchased complete building then u can add nominal expense..

u can over value ur building from valuer.