Determining Fair Value as on 2000/01 for properties purchased BEFORE 2000

Dear Sir,

Hope you are doing well !!

1 & 2. It is advisable to get the FMV/ valuation of the land as on 01.04.2001 done from the registered valuer.

Government-approved valuers follow a standard process for the valuation and provide a detailed report.

“Assumptions of any type for consideration of value shall not be entertained by the income tax department. In case of any enquiry, the department will consider the value stated in the valuation report from a registered valuer,"

3. You can take the benefit of indexation on cost of improvements subject to sufficient proofs.

-However, in absence of proofs, you can get valuation report from the Engineer/Approved valuer for estimated cost of construction/ improvements during the years.

-Also you can claim Expenditure in connection with transfer/sale: It includes brokerage charges, registry charges or other expenses made on the asset sale

It is advisable to take a phone consultation for detailed discussion.

Hi

1. Yes, or you may get a valuation done from a registered valuer.

2. If rate per marla is as per circle rate, it can be adopted.

3. Expenses incurred after 1 april 2001 shall only be considered, provided proofs are available.

Your mother can gift any amount to your wife. There is no limit. Gift from relatives is exempt from income tax. It is to be reported in EI schedule of the ITR of the receiver. For documentation purpose, prepare a gift deed or a notarized declaration. Such documentation shall be useful in case any query comes up in future.

Gift from the relative is not covered in the taxable income in the hands of the recipients.

There is no limit of such gift from the relatives.

It is advisable that receive the entire amount through banking channel & gift deed.

We may assist you in drafting gift deed.

Yes you can use circle rate as FMV but since you sold the land in 2019 you can even use government approved valuer report which could help you save some tax.

If both the rates are provided by government you can use whichever suits you best. I don't think there should be a difference between the government rates.

If expense voucher are not available it would ne difficult to claim same and since you are taking fmv after 2000 so all expenses done before that would be assumed to be in this FMV.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

No tax is payable on such gift.

Just prepare a gift deed evidencing the value of gift mode of payment, details of gift and always pay it by cheque.

Hello,

1. Yes.

2. Yes, if the circle rate is provided per Marla.

3. The cost of improvement incurred after 2001 could be claimed.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Gift from a relative as per the income tax act is exempt from tax. A gift deed is to be prepared for the same.

Hi

Yes you can use circle rate as FMV or you can use register valuer rate.

You use use that rate which is favourable to you because both are permissible.

You can add expenses but need some proofs.

There in no restriction on gift received from a relative but prepare a gift deed & file itr by showing gift income.

For Capital Gain 

1.  Fair vakue as on 1/4/2000 is taken 

2. You can Use any value either Proprotionatly Per acre value or per marla value that will help you to more Tax saving. It is a process of Tax planning

3. You Should have proper conclusive evidence that only than you can get benefit.

For more detail #9#0#4#1#5#7#3#8#2#6 (Whtsapp no.)  i am practicing CA from Hoshiarpur(Punjab). I will recently open my Office in Mohali.

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1. Law says cost of acquisition or FMV as on 01.04.2001. Circle rate is not FMV. Circle rate is the minimum value on which stamp duty to be paid. Get the valuation report as on 01.04.2001.

2. I am not aware of Marla but answer is replied at above point.

3. It will be covered in FMV as on 01.04.2001. Post 01.04.2001, you can claim subject to availability of the materiality, proofs available.

4. There is no limit for transaction between your wife and brother. Draft gift deed and do the transaction through banking channel only. Ensure whether this gift is revocable or irrevocable basis on which clubbing of the income generated from the gift will be decided.