• Property Valuation for Capital Gains and Lower Tax Filing

We are going to sign an agreement for sale of our individual house (land only and not building) in Bangalore. 

Me my mom and my sister, hold 1/4, 3/8 and 3/8 share. Sister is US citizenship.

Chartered account says that, for them to calculate Capital gains and for my sister(US Citizen) to later file for lower tax in India, they will need a property evaluation certificate (as on 2001 April).

Whom do we approach for this. Should the certificate bear the seal and sign of sub-registrar ? What would be the typical cost to obtain such certificate for the property.

Is an official valuation certificate really required or the CA can do a manual indexing and go with assumptions of property value ?
Asked 2 years ago in Property Law
Religion: Hindu

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7 Answers

Seller of any property will have to submit a detailed Valuation Report of fair market value as on 01st April, 2001 (if the property is acquired before 2001) accompanied by the Income Tax Returns (ITR) to substantiate the calculation of Long Term Capital Gains Tax (LTCG) on the sale of property. If an immovable property has been sold on / after 01st April 2017 then it is probably required to submit Valuation Report from a Govt. Regd. Valuer detailing the Fair Market Value (FMV) of the property As On 01st April, 2001 for calculating Long term Capital Gain on the sale of property



2) it is not necessary that it should bear  sign of sub registrar 

 

3) your CA can guide you as to costs for obtaining certificate

 

 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Please contact a registered property valuer ,who visits your property and determines the value of the property based on various parameters.  The registered valuer would be certifying the value of the property by issuing a valid certificate bearing the seal, which will be legally valid.

Shashidhar S. Sastry
Advocate, Bangalore
5623 Answers
339 Consultations

You need to approach revenue authorities in your jurisdiction of property 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

A property valuer is a real estate professional who helps determine the value of a piece of land or building.

Real estate valuation is done through three main approaches. They are the cost-based approach, comparison approach, and income capitalization. Appraisers use either one of these processes or a combination of all three to come to a conclusion regarding the property's current value.

To calculate valuation of property in Bangalore you may adopt the following steps too:

Step 1: Visit the Kaveri website at  kaverionline.karnataka.gov.in to calculate sub registrar guidance value in Bangalore 2022.

Step 2: Opt for basic or advanced search to search for the guideline value.

Step 3: Type in details of district, area name, property usage type, property type, total area and measurement to calculate guideline value Bangalore. Other fields will be auto-populated and you will be shown a valuation of the building rate.

Step 4: Other details that you may want to enter are about the construction type, annexure rules, parking type etc. This will throw up a total valuation of the property.

You can choose a government approved valuer for getting the valuation certificate.

Only Genuine Government Certified Valuers provide the valuation report for your own property.

The typical cost or fee charged by a valuer would be Rs. 25,000/-

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

No such certificate needed. For any rebate/excemption, value in sale deed is sufficient.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

- You can approach the Tahsildar office in the area where the land is situated for getting the property valuation certificate .

- Further, you should submit an application form  with the land details, like your survey number, Land Revenue Receipt, Land Deed , Aadhar Card, Voter ID and land Tax Details. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

To obtain a property evaluation certificate for the purpose of calculating capital gains and potential tax benefits for your sister (a U.S. citizen) in India, it is advisable to consult with a qualified property valuer or a professional property appraisal firm. They will have the necessary expertise and resources to conduct a proper evaluation of the property and provide an official valuation certificate.

 

The property evaluation certificate should ideally be prepared by a licensed and registered property valuer who is recognized by the government authorities. The certificate should include details such as the property's market value as of April 1, 2001, which is often used as a reference date for determining capital gains in India. The valuation certificate should be comprehensive and provide supporting documentation and justification for the determined property value.

 

The certificate does not necessarily need to bear the seal and signature of the sub-registrar. However, it should be prepared by a qualified professional with expertise in property valuation and comply with the relevant standards and regulations.

 

The cost of obtaining a property valuation certificate can vary depending on various factors such as the location, size, and complexity of the property, as well as the service provider's fees. It is recommended to contact different property valuation firms or professionals in your area to inquire about their fees and obtain quotes for their services.

 

While a Chartered Accountant (CA) may be able to assist with certain financial calculations and tax matters, it is typically the role of a property valuer or appraiser to provide an official valuation certificate. Their expertise and experience in property valuation ensure a more accurate and reliable assessment of the property's value.

 

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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