How can we calculate capital gain when a land of 25 cents purchased in 1960 for Rs10000/ and sold for a higher value today.
The land is our ancestral property. After their demise on 2014, as legal hair we have it now.
Hi! In order to calculate the taxable amount you'll have to reduce the cost of acquisition of the property (i.e. the amount for which the deceased acquired/purchased it,) from the value for which you now sold this property. In this case the cost of acquisition would be the Fair Market Value of the property as it was on April, 2001, since you just said it was acquired in 1960. So that is the one thing you'll have to determine (you may approach a registered valuer for that purpose.)
Plus any any money spent by the deceased on the property for any improvements made to the property shall also be deducted from the total taxable amount. For any more queries please don't hesitate to leave a further message!