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Anon Oymous   01 June 2023

Query on long term capital gain tax on sale of residential plot

Dear Sir,  

I had purchased a residential land plot in May 1997 in Satara area at Aurangabad (Maharashtra).

The registration deed was at a price of Rs 25000/- I am selling it this month for a registration value of around Rs 16,000,00/- The market price is different from the registration value both in buying and selling.

What would be the capital gains accrued in this transaction? what is the capital gains tax liability and how can it be saved entirely? what are the options available? Could you please advise ASAP?



 3 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     01 June 2023

You put this query in or consult a local CA.

Dr. J C Vashista (Advocate and Legal Consultant)     02 June 2023

I agree with the advise of expert Mr. Kavksatyanarayana ji.

Harendra Kumar (A Practicing Lawyer)     03 June 2023

Dear Queriest,

Capital Gain arising according to their rate Short Term is 15% and Long Term @20%. However, value of purchase did not mentioned by you at such proerty did not mentioned by you nor sale price. I am enclosing herewith calculation for your kind perusal as bellow:

Final Sale Price – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where: Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.


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