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Capital gains

vsraj (administration) (136 Points)

17 April 2019

This question is with respect to house property. Especially when the property is purchased before 1980 , I understand the base year for calculation is changed to 2001. If the property is sold in 2019 how to arrive at the Capital Gains ?

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 17 April 2019

you first need to find out the fair value of the property as on 01.04.2001 from a professional valuer.
after that the valuation as on that date or the actual purchase cost of the property whichever is higher needs to be indexed and deducted from the value of sale consideration.balance remaining is capital gains.
you can also claim deduction towards expenses incurred in connection to the transfer such as commission and brokerage at actual AMT paid.
you need to invest the capital gains either in another residential property at actuals or in capital gains bonds maximum upto RS. 50lacs

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