I bought flat registered at 66,500 for land cost in 1994 and entrusted the promoter for building a flat for 2,56,500. Total cost incurred 3,23,000 INR in 1995 completion.
Later I sold the flat in Aug 2025 for 36Lakh.
What will be CG Tax if I use my indexation benefits, please tell us the formula
Ans: For house property, acquired before 1st April 2001, owner has option to consider market value as on 1st April 2001 as cost.
Resident taxpayers (individuals/HUFs) selling immovable property acquired before July 23, 2024, can choose between two options for Long-Term Capital Gains (LTCG) tax:
Option A: 20% tax rate with indexation benefit (adjusting purchase price for inflation).
Option B: 12.5% tax rate without indexation.
This allows taxpayers to choose the lower tax liability.