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There would be tax liability on the same.
In respect of capital asset acquired before 1st April, 2001, the cost of acquisition will be higher of the actual cost of acquisition of the asset or fair market value of the asset as on 1st April, 2001.
It is advisable to get the FMV/ valuation of the Property as on 01.04.2001 done from the registered valuer.
Government-approved valuers follow a standard process for the valuation and provide a detailed report.
“Assumptions of any type for consideration of value shall not be entertained by the income tax department. In case of any enquiry, the department will consider the value stated in the valuation report from a registered valuer,"
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 improvement.
-Amount of capital gain would depend upon sale price, sale date, purchase price and purchase date etc.
Please share the details with us for exact capital gain calculation.
-We may assist you in getting the valuation report as on 01.04.2001, capital gain calculation, ITR filing & entire procedure.
-It is advisable to take a phone consultation for detailed discussion.