The replies to your queries are as under: 1 Capital gains tax will be levied on the actual value you get. However, if the actual sale value is less than the rate at which the stamp duty is payable, the stamp duty value will be considered as deemed consideration u/s 50C of the Income Tax Act. In your case, the stamp duty value is Rs. 198.6 Lakhs as against the actual sale value of Rs. 132.4 Lakhs. Hence,Rs. 198.6 L will be considered as the deemed consideration. However, if you appeal before the Stamp duty authority or in any court of Law about the stamp duty, you can then take the actual sale consideration for the purpose of computation of long term capital gains. 2 The stamp duty paid on registration of the flat you are purchasing will also be added to the cost of acquisition. 3 Furniture which is part of your flat like wood work, electrical fittings can be considered for the purpose of determining cost of acquisition. However, you cannot add the cost of sofas , modular kitchen etc as part of your cost. 4 Capital gains is the difference between the sale value and the cost of the asset after adjusting for indexation. In your case, it is not possible to determine the capital gains tax without knowing the cost of your property being sold now. As the stakes are high in your case and involves issues relating to inheritance, it is advisable to take the advice of your CA before filing your return, as the documents and cash flows will have to be reviewed for proper assessment of your taxable income.