I am owner of a flat (860 sq. feet OR 80 sq. meters) located in Thane, purchased in 1990 at say Rs. 4.00 lacs. I wish to sell the flat in next month i.e. January 2019 at say Rs. 70 lacs. As per index my cost of flat falls under 100 (year 2001-2002) and 289 (year 2019-2020). I have taken the valuation report from a approved valuator which state that the valuation of flat is Say Rs. 40 lacs. As per my calculation it shows that : 4000000 x 289 / 100 = 1,15, 60, 000 (Indexed cost of acquisition) The Ready Reckoner Rate mentioned for my location is Rs. 87100/- for per sq. meters. In view of above information, please inform and advice me, whether I am entitled to pay CapitalGain Tax and If so, How much will be the amount ? Thanks S. Madhavan
Dear Sir,
Hope you are doing well !!
Please share the actual sales amount with us.
As per given data,there would be no tax liability as the indexed cost of acquisition is more than sales price.
(Assuming the sales price is equal to ready reckoner rate)
Hello,
As per the information provided by you, there would be No Long Term Capital Gain since the indexed cost of acquisition of the property is more than the sale value of the property. ( Assuming you have taken the valuation report of Rs. 40 Lakhs as on 1st April 2001)
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hello Sir,
There would be no capital gain liability as your property indexed cost is more than the sale value of property..
In fact it would be capital loss.
You can carry forward the capital losses and set off the same with capital gain in next 8 AY.
If the above information is perfect then you would not be required to pay any capital gain tax as you would be incurring a capital loss.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
In such case, the sales consideration is less than the indexed cost of acquisition. This, you will have a capital loss. The same needs to be reported in your ITR. You can set off and carry forward such loss to set off with gains in future.
No taxes applicable.
