house property transfer

My father had purchased a property at Pondicherry measuring 1440 sq f in 1977. It was a mud house. I inherited the property in 1985 after his death. Slowly invested small savings of mine and rebuilt the house to two storied. I was doing business and suffered  loss. The money lender lady finally had a compromise and agreed to take the house in lieu of loan plus interest. The amount has been agreed as 18 Lakh. Accordingly we made a sale deed and given for registration. Registeration is held upbecause She has no PAN card. Now she has  applied for it.

At present I get Rs. 1000 per month as pension from Govt old age Plus my children are sending 12K from US for my sustinence.

MY question is : 1. Do I come under Capital gains tax . If it is positive how much and how can I escape.

2.Do I have to pay income tax also on this income. If yes how much.


You are liable to pay Capital Gain Tax.  To avoid tax,  You have to purchase another property


Give full details for working and arrive at TAX LIABILITY




The unabsorbed depreciation brought forward from the earlier years and the current year's unabsorbed depreciation, can be set off against the long term capital gains from the sale of the property.

The indexed cost of acquisition of the land, will be deductible from the sale price(Rs 18 lakhs), to determine your LT-CG. The indexed cost of construction (which you will have to state with evidence) of the house will also be similarly deductible.


I had bought a land for 2 lakhs in 2001. now i am planning to sell it for 15 lakhs and gift the money to my father.

My father will use it to buy a land in his name. 

will i to pay capital gain tax considering that the capital gain money gifted is used for buying property?


Thanks for the reply. I have not kept any record that I have spend for subsequent construction. Will it be helpful if I take a certificte from a Chrtered Engineer certifying that the current material value is etc etc. Further todays market value of the propert is between 35 to 50 Lakh. I got offer for 35 Lakh. Knowing this that lender lady has agreed to the deal. Please advise. Can you prepare the papers? I am ready to pay you if your charges are within my limits.Till now I have not paid any income tax although I have PAN card and the lady spent 90 thousand on stamp paper to register the deed.


Your Query: Will it be helpful if I take a certificte from a Chrtered Engineer certifying that the current material value is etc etc.

The present value is no substitute for the actual cost of construction. However, in the absence of original records/accounts, you may get a Report on the Actual Cost of Construction- FinancialYear-wise, from a Registered Valuer.

Your Query: Can you prepare the papers? 

I regret I will not be able to, because of logistical difficulties.




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