Quick Summary
In the realm of property taxation, a crucial issue has surfaced regarding the Cost of Acquisition for assets bought before April 1, 2001. This determination affects the calculation of capital gains and tax obligations. The Income Tax Department has brought a clarification in this regard via X handle as follows - New Capital Gains Taxation regime An issue has been raised as to what would be the Cost of Acquisition as on 1.4.2001 for properties purchased prior to 2001. For properties (land o
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FAQ :
The department has clarified how to determine the cost of acquisition for properties bought before April 1, 2001, for capital gains tax purposes.
Taxpayers can choose either the original cost of acquisition or the fair market value of the property as of April 1, 2001.
Yes, the fair market value used cannot exceed the stamp duty value of the property, where available.
Taxpayers should choose the option that is most beneficial to them, as per section 55(2)(b) of the Income-tax Act, 1961.
The clarification specifically applies to properties (land or building or both) purchased prior to April 1, 2001.
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