Respected sir, warm regards, Sir i received one old house through will on date October 2010 by my grandmother which she also received through will in 1994 by my grandfather. i sold this old house in October 2012.Sir is there any capital gain arose , if arose it will be short term or long term. The house is old about 1960s and we have no purchase value record of that time, my grandfather also built 3 rooms in 1985 but we have also no record of that investment, sir how we declare that property,s value and what supporting document we require when filing the return.
1 Answers
This would be treated under long term capital gains.
In case, purchase value is not known, a fair market value as in April, 1981 would be considered as purchase cost.
Below is an example computation shown for long term gains:
Purchase Year = 1981-82, Purchase Cost = 50000, Cost Inflation Index (CII) for purchase year = 100
Construction Year = 1985-86, Construction Cost = 100000, Cost Inflation Index (CII) for Construction year = 133
Sale Year = 2012-13, Selling price = 5000000, CII for sale year = 852
Indexed Purchase/Construction Cost = 50000 x (852/100) + 100000 x (852/133) = 1066602
Long term capital gain = 5000000 - 1066602 = 3933398
This gain can be shown in ITR-2 return form. No document needs to be attached along with return form. In case IT department needs it, they can demand it later.
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