Question regarding Real Estate. - I purchased a property at a document value of Rs.10.00Lacs. - Subsequently the corporation index rates increased (Doubled) within 6 months of my purchase. - Now if I sell my property at the increased index rates, within 2 years of my purchase, - Will I have to book profit for the difference in index rates of purchase & sale. Please Advise

Ans: Assuming sales consideration is 22 crs then you will get the exemption to the extent of 1/22.

Ans: Dear Kolli,
The Finance Ministry has clarified that house property bought before 2001 is eligible for indexation benefit, not on or after.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Using indexation on each cost helps significantly reduce taxable gains. Consulting a tax professional can provide precise calculations based on current CII values.
Your property's value as of this date- Index this amount using the Cost Inflation Index (CII) applicable to 2001 and the year of sale.
Improvement Costs- will also be indexed from year of modification to the year of sale.
Capital Gains Calculation- The difference is the taxable capital gain, which will be taxed at 20% with indexation.
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
Free Webinar https://bit.ly/PLH-Webinar

Ans: Hello;

Yes you may pay LTCG @ 20% with indexation benefit.

Or

12.5% without indexation benefit.

Best wishes!!