—Name withheld on requestAssuming that you constructed and have held the residential property (post construction on the empty plot of land) for more than 24 months prior to sale, the said property will qualify as a long term capital asset. We have also assumed that you are selling half of the property along with half ownership of the plot on which the property is constructed. Further, the cost of construction and cost of improvement incurred if any thereafter would also be attributed equally to both parts of the property. The indexed cost of acquisition would then be calculated as cost of acquisition or FMV as on 01 April 2001 or cost inflation index (CII) of FY2001-02 (i.e. The LTCG shall be computed as the difference between net sale proceeds (sale proceeds less brokerage expenses) and the indexed cost of acquisition.

Source: Mint July 28, 2019 17:37 UTC