LT Capital gain on house property

A plot of land was allotted to my father by the Housing board on leasehold basis. This plot was transferred to me by my father and was registered in my name for value of Rs. 38,000 in 1992. In 1994 I constructed a house on the plot investing Rs. 3.3 lakh. Later in 1994 I further expanded the accommodation with investment of Rs. 1 lakh. In 2008, the leasehold was converted to freehold but the registration value remained at Rs. 38000. Now I want to sell off the property. For computation of capital gains, what will be my cost of the house, I have taken part loan from my employer and remaining as saving & personal loans so what documents will be required for the basis of cost and what will be the document requirement of IT deptt along with my tax return. OP Dhoundiyal

asked Jun 27 '11 at 20:35 by OP Dhoundiyal 1111


When was land allotted to your father. That year will be used for computation of current indexed value. In below indicative calculation, it has been taken as 1992-93.

Purchase Year = 1992-93
Purchase Cost = 38000
Cost Inflation Index (CII) for purchase year = 223

Construction Year = 1994-95
Construction Cost = 430000
Cost Inflation Index (CII) for Construction year = 259

Indexed Purchase/Construction Cost in 2011 = 38000 x (800/223) + 430000 x (800/259) = 1464508
CII has been assumed as 800 for 2011-12, as its not declared yet.

Current cost of house to you is around 14.64 lakh.

No document need to be attached with income tax return, but you will have to fill ITR2.

answered Jun 28 '11 at 17:42 by Pankaj Batra 5.2k320

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Asked: Jun 27 '11 at 20:35

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Last updated: Jun 28 '11 at 17:42