28 June 2021
A person had taken land on 30 years lease in 1977 which was renewed on 2007. He paid Rs 3600 as premium at the time of taking the lease in 1977. A house has been constructed in the land around 1977-1980. The lease hold land along with house has been sold for Rs 30 lakhs. Kindly advise on the calculation of capital gain.
28 June 2021
Consider market value of the building as on 1/4/2001 and update it with indexation. Capital gain is 30 lacs minus indexed cost. Market value of premium payable on 1/4/2001 on land lease can be updated with indexation can also be reduced from sale value.
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