Dear Pankaj Ji: I request you for an advice.
My daughter purchased a plot in FY 96-97, which she sold in FY 11-12 at much lower prevailing price than the circle rate. The plot is in unapproved area and the practice of sale/purchase is power of attorney. To save tax on LTCG, U/s 54F she would utilize the whole consideration amount (sale proceeds) in construction of a house, for which she has already paid part payment to the developer for a plot and the balance deposited in Capital gain account (before due date of filing the return). My question is does she need a valuation report from Govt. Regd. valuer and your advice on the sale lower than the circle rate.
