Method to calculate reverse indexation cost in case of property

What do you mean by reverse indexation method? it's always a forward calculation. Nevertheless, for academic purposes, take FMV as of today, multiple by 100 and divide by 280 (2018-19 CII). That will take you to the FMV in 2001. If your question is simply how to know the FMV of a property in 2001, you can check with your registrar of properties of your location to know the circle rates that were prevailing then. You can also check with a professional property valuer on the rates of 2001 of similar property.

FMV as on 2001 is calculated by the registered valuer.There is no concept of reverse calculation for FMV as on 2001.

Hi,

Can you tell the purchase date of the property ?

Thanks

Damini

Hi,

Hope you are doing well !

Please simplify your query .

As such no concept to find out fair market value of a property as on 01.04.2001 on the basis of reverse indexation calculation.

If you want to know FMV of Property as on 01.04.2001, please find below the some methods:

1. Find out the average sale price of similar properties in the neighbourhood, which were sold in the year 2001.

2.Look at circle rates or Guidance Value

3.Take help of a registered valuer

4.Real estate indices, such as the National Housing Bank’s (NHB’s) Residex, and two indices of the Reserve Bank of India (RBI)—Housing Price Index (HPI) and Residential Property Price Index (RPPI).

Thanks & Regards,

Payal Chhajed

Hi,

Valuation of property as on 1.04.2001 to be done by registered valuer.

Hi

There no concept of reverse indexation.

To know the value as on 1.04.01, you need to get the stamp duty value from the registration department or the ready reckoner rate can be adopted. Apart from these and several other methods, the best and most beneficial is getting a valuation done from registered valuer.

Hi,

You can get the stamp duty value from the registration department. You can also get the value done by the registered valuer.

Regards,

Nikhil.

Hi,

There is nothing In the income tax Act or rules which supports reverse indexation. There are certain case laws to support it but its not recommended to use that.

You can either take the fmv of 1.4.2001 or circle rate.

Sorry, but I could not gauge as to what exactly are you trying to ask in here.

It would be advisable to obtain the fair value of a property as on 1 April 2001 from a registered valuer.

Get the circle rates for your area for that particular period or fair valuation done through a Govt approved Valuer in case circle rates are not available.