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capital gain and property valuation
1 week ago
Sir, My grand father made an house and we inherited the property (Constructed House) and the property was given to a builder on 2005 for apartment construction and on 2009 apartment was completed and we were allotted 3 flats in that apartment. One of the flat came in my possession with all legal procedures done now i want to sell my flat but i am uncertain about the price valuation as the current circle rate is higher then the price i am selling. The inherited property was constructed way back around 1970's so the valuation to be taken for capital gain is also uncertain. Sir could you please guide me how to deal with this situation such as what should be the valuation of the property ? At what price the registry should be done & how the money should be received ?
A.Dear sir,
You may please contact any chartered accountant or auditor as it involves financial and tax matters otherwise you may be mislead.
You may please contact any chartered accountant or auditor as it involves financial and tax matters otherwise you may be mislead.
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A.Dear Client,
Long Term Capital Gain on sale of immovable property is computed based on the Cost Inflation Index(CII) and the value of the property in the relevant year you acquired the property. So, when you acquired the flat in 2009 and want to sell it in 2024. LTCG shall be calculated (by taking either the value or the circle rate (whichever is higher) of the property that you acquired in 2009 and the Cost Inflation Index of the said year and taking either the value or the circle rate (whichever is higher) and the Cost Inflation Index of the year of sale of the property. The difference between the Value of property in the year it is acquired and the Value of property in the year it is sold is considered LTCG. Section 54 of the Income Tax Act deals with the discount or rebate available to an assessee subject to compliance with the conditions prescribed under Sec.54 of the Act. Reach out to a CA or Tax Consultant for more clarification, guidance and steps before filing an ITR claiming the rebate allowed on LTCG under Sec.54 of the Act
Long Term Capital Gain on sale of immovable property is computed based on the Cost Inflation Index(CII) and the value of the property in the relevant year you acquired the property. So, when you acquired the flat in 2009 and want to sell it in 2024. LTCG shall be calculated (by taking either the value or the circle rate (whichever is higher) of the property that you acquired in 2009 and the Cost Inflation Index of the said year and taking either the value or the circle rate (whichever is higher) and the Cost Inflation Index of the year of sale of the property. The difference between the Value of property in the year it is acquired and the Value of property in the year it is sold is considered LTCG. Section 54 of the Income Tax Act deals with the discount or rebate available to an assessee subject to compliance with the conditions prescribed under Sec.54 of the Act. Reach out to a CA or Tax Consultant for more clarification, guidance and steps before filing an ITR claiming the rebate allowed on LTCG under Sec.54 of the Act
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A.Dear Client,
In your situation, determining the valuation of the property for sale can be complex due to various factors, such as the historical construction of the property, its transformation into apartments, and changes in circle rates over time. For capital gains tax purposes, the valuation of the inherited property would typically be based on its fair market value as of the date of inheritance, which may require historical records or professional estimation. You may need to consult with a tax advisor or accountant to determine the appropriate valuation method and any tax implications.
When selling the flat, it's important to ensure that the sale price reflects its true market value to avoid any potential legal or tax issues. While the current circle rate may be higher, the actual sale price should be based on prevailing market conditions and comparable sales in the area.
For the registry process, it's recommended to follow legal procedures and register the sale at the agreed-upon sale price to ensure transparency and legality. The payment should be received through a secure and traceable method, such as a bank transfer or cheque, to maintain a clear financial trail and avoid any disputes.
In your situation, determining the valuation of the property for sale can be complex due to various factors, such as the historical construction of the property, its transformation into apartments, and changes in circle rates over time. For capital gains tax purposes, the valuation of the inherited property would typically be based on its fair market value as of the date of inheritance, which may require historical records or professional estimation. You may need to consult with a tax advisor or accountant to determine the appropriate valuation method and any tax implications.
When selling the flat, it's important to ensure that the sale price reflects its true market value to avoid any potential legal or tax issues. While the current circle rate may be higher, the actual sale price should be based on prevailing market conditions and comparable sales in the area.
For the registry process, it's recommended to follow legal procedures and register the sale at the agreed-upon sale price to ensure transparency and legality. The payment should be received through a secure and traceable method, such as a bank transfer or cheque, to maintain a clear financial trail and avoid any disputes.
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