Treatment of capital gain on sale of land & building

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11 Points Posted on 12 March 2020
I have purchased land in the year of 1997 and construct the building on the same in the year of 2006 and i sale the building in year 2019. whether capital gain is calculated individually on the land and building or shall I consider one of same and calculate capital gain only on building.
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On 12 March 2020 at 19:49 Report
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When selling land and a building constructed on it, capital gains tax is calculated by combining the cost of the land and the construction costs. For the land's cost of acquisition, you should use its Fair Market Value (FMV) as of 1st April 2001, and apply indexation. The construction cost is treated as an improvement cost, also subject to indexation.

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17269 Points Posted on 12 March 2020
You have to club together cost of land and cost of construction and apply indexation accordingly from effective date.

Land cost here will be FMV as on 1-4-2001
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On 12 March 2020 at 20:23
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11 Points Posted on 12 March 2020
Thank you mam
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On 12 March 2020 at 21:48
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12244 Points Posted on 12 March 2020
For cost of acquisition of land take FMV as on 01/04/2001 and apply INDEXATION. for construction of building take it as cost of improvement and apply INDEXATION
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On 12 March 2020 at 23:41

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