How is capital gain tax calculated on property

Hi

The property should always be registered at actual consideration. For the purpose of calculating cost of acquisition registry value shall be taken I.e. 8.6 lacs.

Cost of acquistion would be Rs. 8.6 lacs and you need to calculate indexed cost of acquistion while computing capital gain.

Hi,

Since, you have made registartion at 8.6 lacs, you should stick to that only. Otherwise, tax officer may pass on the information to registry department and they can recover past dues with penalties.

It's always better to do the registration at actual value.

In my opinion, you should take cost of acquisition at 8.6 lacs.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Dear Sir,

The cost of acquisition will be on the basis of your Purchase deed you had entered onto at the time of purchase.

Further, you can calculate your COA after considering the Indexation charts provided by IT act.

Thanks,

CA Sourabh Pahuja

Hi,

Currently, indexation for 2002-03 is 100. Hence, your cost of acquisition would be 18 Lakhs and sale price is 64 Lakhs. You will have to pay Long Term Capital Gains Tax @10% on Rs. 46 Lakhs (64-18).

Besides this, you can add cost of stamp duties, any major renovation done to property as your cost of acquisition.

Regards,

Hi,

It will be prudent to take the cost of acquisition as the registered value to avoid litigations. However you can take indexation benefit on the same.

Regards,

Nikhil

Acquisition cost to be 18 lacs.