Dear Sir/Madam, My Wife's Grand Father had a parcel of land in Chennai, Tamil Nadu and which he had gone into a Joint Venture with a reputed builder of that time to construct apartments with a 60 - 40 Ownership of the completed flats in the year [deleted]. Sixty percent being the share of my wife's grandfather and forty percent being the Builders share. The construction of the Apartments was completed in the year 2002 and finally as part of the family settlement my wife's mother got her share of the apartments and registered legally in the year 2014. In December 2019, she sold an apartment for Rs 50 Lakhs (tad less than Rs 50 Lakhs). We wanted to know how the cost of acquisition of the property and the year should be considered for the calculation of the Capital Gains. 1. It should be based on the sale price that was prevailing in the Year 2002 or Year 2014? 2. Registration Office or Registered Valuer or CA can provide the cost of acquisition of the property? Please clarify our doubts!
How did the mother received her share?
As a part of will or gift deed?
If not then what was the consideration she paid?
How was the family settlement done in 2014? On what basis?
In both the cases stamp duty must have been paid for transfer?
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Dear Sir,
Hope you are doing well !!
It is advisable to take a phone consultation for detailed discussion.
The cost will be fair Market Value as in 2002. Registered Valuer can provide Fair Market value as on 2002.
- It is a case of JDA and inheritance. Cost of acquisition is cost in the hands of grandfather for the share of your wife's mother. Assuming land was purchased before 01.04.2001, get the valuation of the complete land as on 01.04.2001. Indexation would be considered from 2001 i.e. 100.
Hello,
Cost of acquisition, in case of inheritance, is the cost of the previous owner i.e. in your case your wife's grandfather. since the property was acquired before 1st April 2001, the cost of acquisition would be allowed to be the FMV as on 1st April 2001. Registered Valuer would be able to provide your FMV as on the Year 2001 for your particular share.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
