Since this is a sale of Capital Asset held for more than 36 months the liability to pay any tax is requried to computed under the Head Long Term Capital Gains subject to provisions of section 54 of the Act.
In case you intend to purchase another residential property out of consideration received from sale of existing residential property no tax shall be payable if investment in new residential property is equal to or greater than the Long Term Capital Gain as computed.
To compute Capital Gains follow the following principal
Take the cost of acqisition at actual as per purchase deed of 2006 as increased by cost of acqusition like stamp duty paid and brokerage paid, if any. considering your acqusition at Rs. 1.00 lakh as mentioned
indexed cost will be 1.00*261/122=216393.40
Sale consideration is 7.00 lakh
LTCG is 483606.60
Capital Gain tax payable is 20% of LTCG i.e. 96721.00 as increased by any surchage and cess payable by you