Market Price As On 01/4/1981 is Cost of bunglow.
January 27, 2007 by taxworry · Leave a Comment
My father owns a bungalow bought in year 1974. If he sells now what would be the rate of LTCG tax. What would be the rate of indexation for the purpose calculation the tax. and How about investment in 54EC bonds etc.Please let me know in detail.cheminpex@……com
The rate on long term capital gain tax is 20 % . Since your father had bought the bungalow in 1974, you have the option of taking the market value as on 1/4/1981 . You can get valuation done by registered valuer for market price as on 1.4.1981 and then claim indexation .The capital gain indexation for 1981 was 100 . Yes , you can also avail of exemption from LTCG by investing amount in Bonds u/s 54EC of the I T Act.
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