27 August 2017
DDA LIG flat purchased in 1970 for rs 20000 (land costs rs 4500). first floor constructed in 1977 for rs 1 lacs and ground floor renovated in 1980 for rs 1.5 lacs
now, full house demolished in may 2012 and new construction started in oct 2012 and completed in august 2013 .the construction cost was rs 65 lacs.
full house sold in august 2017 at a price of rs 1.22 crores pls guide me regarding how to compute the capital gains arising from this sale???????
27 August 2017
There are two parts to your query - land aspect and building aspect. From the selling price, cost of the land must be separately indexed and cost of the building (construction cost after demolition i.e rs.65 lacs) must be separately indexed.
28 August 2017
Thanks for your interest Sir But i have a confusion that wether we should go for above indexation as per your calculation or we should go for the fair market value of land as on 2001 ???
CAclubindia
