Calculation of Capital gains on property purchased in 1988 and sold in 2024
Dear Sir/Madam,
I had purchased a piece of land in April 1988 for Rs. 10,000.
Thereafter, I spent money on its construction, improvement, extention and addition as under :
1. For construction in1994-95 = Rs. 40,000 from my savings informed to my office
2. For construction in 1995-96= Rs.1,04,500 Withdrawal from GPF/from savings informed to office
3. For construction in 1995-96 = Rs; 2,00,000 - Loan from Bank
4. For construction in 1996-97 = Rs. 5.500 from my savings informed to my office
5. For improvement in 1998-99= Rs. 57,5000 from my savings informed to my office
6. For improvement in 1998-99= Rs. 1,34,000 - Loan from Bank
7. For extension in 1999-2000 = Rs. 1,50,000 - Withdrawal from GPF
8. For addition in 2004-05 = Rs. 1,20,000 - from savings informed to my office.
I have proofs of all these loans, withdrawals and savings. Besides these, I spent about Rs. 2,00,000 also from my savings, for which I have no proof.
In the year 2021, I transferred the propetty to my son and now in Jan, 2024, he has transferred it back to me. Now, I want to sell the property for Rs. 70,000. The questions are -
1) Whal shall be the current value of the land?
2) What shall be the current value of the house constructed on it?
3) What shall be the capital gains or loss?
4) In case of capital gain, where and how to keep that gain for claiming income tax rebate etc as I
want to purchase another residential property in lieu of tha?
5) In case of capital loss, what shall be the benefits accuring on it?
6) Can I claim capital gain or loss in view of its transfer to my son and re-transfer to me by my son?