Long term capital gain

This query is : Resolved

Kamal Bhojwani (Querist)
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07 July 2019 My father purchased land in 1999-2000 for Rs 1,20,000 with agreement to sale. He constructed a house spending approx. 4-5 lacs (but no bills as a proof). There was an agreement finally in 2017-18, where agreement was done, stamp duty of approx Rs 3,00,000 paid on then current value of 42,00,000 (calculated by govt approved valuer)
My father passed away in 2018-19 and my mother inherited the property. She sold the house in 2019-20 for Rs 45,00,000.
Probably, my mother is liable for Capital gain tax, but not sure how the indexed cost of acquisition will be calculated considering no proof for the cost incurred for construction at that time is available. Please help.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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07 July 2019 Indexed cost of acquisition has to be calculated and to ascertain that we need to find the Fair Market value of the property.

Since the house was constructed before that, there is no need to show proofs of cost incurred.

You can avail the services of a Govt approved valuer to find the Fair market value as on 01-04-2001 and calculate the tax accordingly.