Dear Sir,
Hope you are doing well !!
As such date of acquisition falls prior to 1 April 2001, you have a choice to consider the Fair Market Value (FMV) of the property as on 1 April 2001 as your cost of acquisition.
So, firstly you need to get the valuation report of property as on 01.04.2001.
Further,to calculate the long-term capital gains tax payable, the following formula is to be used:
Long-term capital gain = full value of consideration received or accruing – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where:
Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.
Indexed cost of improvement = cost of improvement x cost inflation index of the year of transfer/cost inflation index of the year of improvements.
-You need to reinvest the capital gain amount in new property to get full exemption.
We have handled such cases before. We may help you in capital gain calculation.