If seller was resident in India then tax on LTCG would be minimum of the following:
1 Net Sale consideration - cost of acquisition = LTCG
Tax= 12.5% of LTCG
2. Net Sale consideration - Indexed cost of acquisition = LTCG
Tax = 20% of LTCG
LTCG on Plot bought in 2007 and sold in 2024
I had bought a 250sq yd plot from Narne Estates near Hyderabad like thousands of others for 5 Lakhs in August 2007 but there were many issues and nothing has happened there so far. Someone bought my plot for Rs 5.5 lakhs in August 2024. How will the LTCG be calculated on this sale? The sale will be registered in September this year. I live in Delhi.
Asked 9 days ago in Capital Gains Tax
Since you purchased the plot in 2007 and sold it in 2024, you qualify for Long-Term Capital Gains (LTCG) treatment.
You are eligible to choose between:
-
12.5% tax without indexation, or
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20% tax with indexation
You should choose the indexed option, because it results in no taxable gain and zero tax payable in your case.
Let me know if you need help with the ITR or reporting format.
Thanks for your comments. Kindly consider all the details, as it is not so straightforward. The numbers and dates say it should obviously be a LTCL: a capital loss. Also do Section 50C, Section 48, second proviso to section 112(1)(a) etc have a role as ITR2 refers to them and must be correctly addressed for this section. Many thanks.
Asked 9 days ago
Based on your case, the indexed cost is much higher than the sale price, indicating a long-term capital loss. However, sections like 50C, 48, and 112(1)(a) must be carefully applied, especially if the stamp duty value (SDV) is higher than the sale price — which can change the tax outcome significantly.
You likely have an LTCL to report in ITR-2, but final treatment depends on the SDV. Proper application of indexation, deemed consideration, and tax rate provisions is essential.
To get this right and avoid mistakes in your ITR, I recommend booking a phone consultation.
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