Kartik purchased a house property on 20th June, 1995 for consideration of ₹2,25,000. He incurred following expenses for making addition/alternation to the house property: Particulars Amount (₹) Cost of construction of fi

Computation of Capital Gain for Kartik Particulars Amount (₹) Gross Sale Consideration (W. N. 1) 65,50,000 Less: Expenses on transfer (25,000) Net Sales Consideration 65,25,000 Less: Indexed Cost of Acquisition (W.N. 2) (₹8,50,000/100*348) (29,58,000) Less: Indexed Cost of Improvement PY 1997-98 taken as Nil (W. N. 3) Nil Less: Indexed cost of improvement PY 2011-12 (₹7,00,000/184*348) (13,23,913) Less: Indexed cost of improvement PY 2022-23 (₹16,55,000/331*348) (17,40,000) Long Term Capital Gains 5,03,087 Working Note: 1. As per section 50C of the Income tax Act, 1961, where the actual sale consideration is less than the value adopted by the Stamp Valuation Authority and such stamp duty value exceeds 110% of the actual sale consideration then, the value adopted by the Stamp Valuation Authority shall be taken to be the full value of sales consideration. Accordingly, in this case, Sales consideration of house property for capital gain purpose will be taken as ₹65,50,000. 2. For house property acquired before 01-04-2001, assessee has option to take higher value as cost of acquisition either from actual purchase cost or fair market value as on 01-4-2001. Accordingly, in this case, Cost of acquisition for capital gain purpose will be taken as ₹8,50,000 (higher from ₹2,25,000 or ₹8,50,000) 3. Cost of Improvement before 01-4-2001 shall be taken as Nil