Calculating Indexed price
1 year ago
I purchased a property for Rs. 38L in 2008. At the time, the purchase rate was Rs. 3000 per Sqft. I am planning to sell the property in March. However, the documentation person is telling me that the govt has changed the purchase rate to Rs. 1100 per Sqft so my sale price is only Rs. 10L and indexed price is Rs.27L.
The reason for this according to this person is that the original price included the cost of the land and now government will not include the land cost (or something along these lines). This makes no sense to me. Can you please advice if there is any truth to what the documentation person is saying?
A.Dear Client,
Since this is a financial query, it is advisable that you consult a chartered accountant in this regard. Thank you.
Since this is a financial query, it is advisable that you consult a chartered accountant in this regard. Thank you.
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A.Dear client
For calculating the indexed price of acquisition you should consultation a chartered accountant but I am giv8ng you here my two cents on the question.
1. The market price can be anything but the price at which you wish to sell and buyer agrees to buy is ok and no body stops you from that.
2. Indexed price can be taken I to account without the land price but that does not kean that you will lower down your selling price.
3. If indexed price of acquisition is lower then it's beneficial to you as you will end up paying lesser tax on capital gains
For calculating the indexed price of acquisition you should consultation a chartered accountant but I am giv8ng you here my two cents on the question.
1. The market price can be anything but the price at which you wish to sell and buyer agrees to buy is ok and no body stops you from that.
2. Indexed price can be taken I to account without the land price but that does not kean that you will lower down your selling price.
3. If indexed price of acquisition is lower then it's beneficial to you as you will end up paying lesser tax on capital gains
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