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Bikram (hm)     26 December 2012

Ltcg tax - use sale deed or actual value?


I have the following questions on LTCG - my intent is to show all LTCG income and optimize my taxes as possible.

- Purchased residential land 5yrs back  (all example numbers): Indexed value per sale deed 6lacs, actual amount paid (bank loan and sale agreement proof) indexed 6lacs.

- Current sale price: Per sale deed 10lacs, Actual sale price (per sale agreement) 15lacs.

I have no plans to invest in bonds or capital property and would like to pay optimum LTCG.


1) Can I use actual paid price of 6lacs and actual sale price of 15lacs for my LTCG calculation? Will it not put me or buyer into problem because the sale deed price is different (10lac)?

2) I've spent 1lac towards a compond wall construction, can I use that for LTCG calculation?

3) If I decide to use sale deed price of 10lac for LTCG, then is there an in-the-scope-of-law option for me to account for the balance 5lac income?  

4) I have paid a good amount of money towards bank interest (loan), I believe this cannot be of use but need a confirmation.

Thank you for any suggestion.


 1 Replies

Rushit Sheth (Advocate)     31 December 2012

Query 1. 

You shall have to use the amount mentioned in the sale deed.

Query 2.


Query no. 3.

In case of husing loan interest you can claim interst upto Rs. 150000/- per year in the various years during which you have paid interest.

All the best.

Rush*t Sheth.


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