Which year to consider for Property tax if sold after the reconstruction?

Flat bought in 2004
Reconstruction and new flat year: 2020
Flat sold in 2025

While paying the tax, which year to consider for the original flat cost? 2004 or 2020?
Note: The owner was changed from wife (bought in 2004) to husband (2020)

Replies (7)
Quick Summary
When selling a property that underwent reconstruction and a change in ownership, determining the correct year for calculating the original cost basis for tax purposes can be complex. This discussion explores whether to use the initial purchase year (2004) or the year of reconstruction and ownership transfer (2020) when calculating capital gains tax. The consensus leans towards using the reconstruction year (2020) as the basis for calculation, especially when indexation is applied, as it may result in lower capital gains. However, it's advised to seek professional advice from a tax expert for definitive guidance.

@ Jack

Ownership changed in 2020.

And obviously, the new owner[husband] is the seller.

Payment made to the seller[husband] and 26AS will show the TDS in the seller's name/pan.

Cost of the flat in 2020 is to be used for CG calculation, with indexation.

Payment made to the seller? This is a resonctruction case.

The owner was changed due to the death of the wife.

@ Jack

Actually, using 2020 market value is better since the C G would be lower compared to using the 2004 value, even with indexation. 

Regarding Tax department bothering one about transfer of registration from Late Wife's name to the Widower, that does not apply, since it was a transfer to the heir of the departed. 

However, plz note that I am not a CA or Indian taxation expert. You should wait for some expert for clarification.

okay thank you for your thoughts!

@ Jack or Abhi21

How did you manage to change your USER NAME in the forum ?

Go to My Profile > Edit profile > update the name and other details

@ Jack or Abhi21

Fantastic lesson   :)

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