| Question And Answer | |
|---|---|
| Subject: | What will be the long term capital gains? |
| Category: | Income-Tax |
| Querist: | Satish Mhadnak |
| Answered by: | Law Intern |
| Tags: | Capital Gains |
| Date: | April 6, 2026 |
Flat purchased in 1985 for Rs.10 lakhs. Sold in FY 2025-26 for Rs.1,13,00,000 after redevelopment in 2023.What will be the long term capital gains? Mr. Satish Mhadnak
As the flat is held for over 24 months, it qualifies as a long-term capital asset. The redevelopment cost can be claimed as cost of acquisition/improvement and indexed appropriately (using the CII for FY 2023-24).
As you acquired the property before 23.07.2024, you have the choice of paying either 12.5% of the gain without indexation or 20% of the gain after indexation.
Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org