- You can consider cost of asset or FMV as on 01.04.2001 whichever is higher as cost of acquisition
For detailed discussion, please drop email at aroravivek1982@gmail
Calculation of capital gain value in DLF Phase I
- Bought 400 sq. yd. land in 1984 and sold in March 2019 - Built a house admeasuring 4400 sq ft in 2001 - completion certificate in 2002 - Govt approved Valuation done in 2002 (just after construction of the house by 2 different Valuers) and 2019 just before sale - I had to leave India immediately after construction to support my only son who is challenged - I took full cheque payment on sale - Rs. 5.75 crores - The IT dept. deducted Rs. 1.37C towards Capital Gain - In 2021 they gave me a Refund of Rs. 89 lacs based on Valuers's assessment of the Valuer @ Rs. 68 lacs for the land and Rs. 41 lacs for deluxe construction (marble flooring, built-in cupboards. granite used in kitchen, Jaquar fittings in 5 bathrooms in 2001 of a but 9 months later the IT Commissioner sent an order for tax scrutiny. The IT Commissioner took the circle rate (lowest possible) in 2001 whereas my sale price in 2019 is one of the highest rates thereby making capital gain value to the widest possible and they have sent me an additional Capital Gains tax order of Rs. 45 lacs which we have appealed with the Appellate Body - Instead of calculating FMV in the base year which is nearly 200% lower, they have expediently enhanced the Gains Value by taking the lowest possible rate in 2001. - I am seeking your advice on how can rationalize the C. Gain value for a more equitable final tax? - What will be your fee for 1-hour Advice in this matter with the aim to find an effective result.
Asked 7 months ago in Capital Gains Tax
Hello,
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Determine the Cost Basis:Use the higher of the actual land purchase price in 1984 or the fair market value as of April 1, 2001, as the cost of acquisition.
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Add Cost of Improvement:Include the expenses for building your house in 2001 to the cost basis.
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Collect Valuation Evidence:Gather appraisals and valuations that support a higher property value in 2001 and 2019.
Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.
Thank you.
Shubham Goyal
You can always challenge the circle rate adopted for the purchase price consideration in 2002 with actual valuation from income tax authorised valuer and showing the location based advantage, premium payment reasoning etc
We can work out suitable course of further action after reviewing orders by department, their bases and how to counter it. Total Fees for that advisory will be Rs. 7,500/- + GST
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