Computation of ltcg
Gaurav Sharma
(Querist) 21 March 2013
This query is : Resolved
Hello,
My grandfather purchased a piece of land in 1950 and registry was also done in 1950. he built a house on this land and the nakshas were passed in 1955.However its conveyance was done with DDA in 1981 and the document title was sale deed.
kindly advice For ltcg purposes, whether to determine the index cost on 1950 or by 1981, as an IT officer may say the value in sale deed(conveyance deed) is to be considered rather than index cost of 1950.
the need to ask this question is because the conveyance deed done in 1981 is titled as sale deed by DDA.
thanks
VARUN MAHAJAN
(Expert) 23 March 2013
for calculation the index rate will be taken for the year 1981 not 1950
Gaurav Sharma
(Querist) 23 March 2013
That's right. but the taxman says he will not take the index cost of 1981 because the the conveyance deed is titled sale deed and was executed in 1981, so he will take the cost of 1981, which seems to be the registering cost of the deed.
