Sir/Madam,
My ancestral house was built up on a piece of land in1985. Total built up price was not known.
After demise of my father, i inhirited the same in 2016 being only son and i sold the ancestral house on March,2022.
Please advise - how to evaluate long term capital gain amount.
Take the base year for indexation as 2001 because the property was built by your father in 1985.
For calculation of Capital gain, the cost of the previous owner is indexed to determine the profit or loss on the sale of the property.
As mentioned above, you don't know the price spent for the construction of the property. Since the property was acquired by your father prior to 1 April 2001, there is an option of taking the actual cost of acquisition or fair market value as on 1 April 2001 for calculating the indexed cost of the property.
CAclubindia
