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Capital Gain basis property circle rate

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garima

Homemaker

43 Points Posted on 05 August 2023

Hello everyone,

I purchased a property at Rs 10 lakhs a few years ago, the indexation value of the same is now Rs 30 lakhs. I intend to sell the property (basis the offer I have) at Rs 55 lakhs. The circle rate of the property is Rs 65 lakhs.

Will I be subject to capital Gain tax in this case ??

Regards

Garima

Replies (5)

Quick Summary

This discussion explores whether capital gains tax applies when selling a property. The user purchased a property for Rs 10 lakhs, which has an indexed value of Rs 30 lakhs and is now being sold for Rs 55 lakhs. The property's circle rate is Rs 65 lakhs. Participants confirm that capital gains tax will likely apply, as the sale price exceeds the indexed cost of acquisition.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 05 August 2023

Yes Capital Gains will attract

sabyasachi mukherjee

Profession

19978 Points Posted on 06 August 2023

Any transfer of capital asset , capital gain arises depending on the tenure of holding.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 06 August 2023

Yes...

sabyasachi mukherjee

Profession

19978 Points Posted on 10 August 2023

But the rate of the house property equals fair market value or others.

Aashok Kumar Sharma

Finance/Compliance Consultant

75747 Points Posted on 08 November 2026

Circle rate below the indexed cost:

• If the sale consideration and stamp duty value (circle rate) are both below the indexed cost of acquisition, you have a long-term capital loss with indexation. That's allowed to be carried forward (for transfers before 23 July 2024).

• For transfers on or after 23 July 2024, resident individuals pay the lower of the tax at 12.5% (no indexation) and 20% (indexed). Whether a loss under the indexed computation can be carried forward is doubtful, so don't rely on it.

• Sec 50C: if the actual sale price is lower than the circle rate by more than 10%, the circle rate is the consideration.