FAIR MARKET VALUE FOR CALCULATING LTCG

shivani071177 1
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Dear Pankaj, As you mentioned, Cost inflation index used in calculations of indexed cost was started from the year 1981-82.

So you will have to assume a fair market value in 1981 to compute capital gains for a plot of land bought in 1976 for Rs 15000-. Fair market value can be assumed on basis of on-going prices in same/similar area in same city during 1981-82.

  1. where do we get the fair market value from.Does it need to be certified by someone ?
  2. How do we certify the cost of renovation ?
  3. also, what is the stamp duty for a gift deed.? regards
fair-market-value long-term-gains ltcg income-tax
1 Answers
  1. You can contact notary registrar office to get fair market value in 1981-82.
  2. You should have payment bills (to a builder/construction company, material supplier) etc for proving cost of renovation. But these proofs need not to provided unless asked by income tax department.
  3. States have different stamp duty rules, so please inquire same from your local registrar office. In case gift is to be given in blood relation, a family settlement deed may also be done, which even has a lesser stamp duty percentage rate.
Pankaj Batra5212
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