Long term capital gain House property

Direct Taxation

I have a query regarding capital gains on a property sale. The property was purchased in 1996, transferred to the son in 2025(gift), and then sold in March 2026. Could you please clarify how the capital gain will be calculated in this scenario? Specifically, will indexation benefit be applicable, and should the purchase cost be considered from 1996, or the Fair Market Value as of April 1, 2001?

David Prakash

CA Inter

★ 60

24-Mar-26 16:47

159

Answers (1)

We can consider the original cost or FMV on 1.4.2001 whichever is higher. Further, we have an option whether to go for indexation or no indexation.

Shiva Teja

Faculty

24-Mar-26 18:47