Please take the 12000/- as the cost of acquisition as the market value may be more for the purpose of long term capital gain.
Cost of acquisition
I was a tenant of a Mhada flat since 1980. In 1989, I paid Rs. 12000 to Mhada who converted my tenancy to ownership. Thereafter, the society wanted to redevelop the property and in 2002 possession of vacant flat was given to developer to develop the property. In 2008, the property was redeveloped and I received the new flat with OC. In October 2017, I have sold the new flat. My question is for the purpose of determining the cost of acquisition, can I take the fair market value of the old flat (which was demolished) as on 1.4.2001 and index the same OR is Rs.12000 to be taken as the cost and indexed accordingly.
Asked 7 years ago in Taxation
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6 Answers
Cost of acquisition: It is the purchase price of the asset which has been sold.
2) in your case it is Rs 12000
Hi, you can obtain the current market value from the revenue office of tehsildar
Hi,
The value of the old property as on 1 April 2001 should be indexed and it should be taken to determine the capital gains.
Regards,
Keerthiga Sharma
M.Com., CA, LL.B
The date of acquisition of the property/flat by a registered deed to your name shall be the date of computation for calculating long term capital gains.
You may decide the issue accordingly.
It may be noted that the value of the old property (01.04.2001) will be indexed and the same shall be taken into consideration for the determination of the capital gains, cost of acquisition would be Rs. 12,000/- in your case.
Regards
