Property Valuation for Capital Gain
Get your Property Valuation Done for Income Tax on Capital Gain. We are Government Approved Property Valuer for Capital Gain Tax Purpose Property Valuation. Get Fair Market Value Property Certificate for your old Property. We are doing Valuation of House, Flat, Plot, Land Etc. We are Serving Property Valuation Service for Income Tax Across India at all locations.
Required Property Valuation for Capital Gain?
Income Tax Purpose Property Valuation
Capital gains tax is a tax on the profits made from the sale of an asset, such as property or stocks. When you sell a property, you are required to pay capital gains tax on the profit you make from the sale. The amount of capital gains tax you pay is calculated based on the increase in the value of the property from the time you bought it to the time you sold it. This is where property valuation comes in.
Income tax on the fair value of property as on 01-04-2001 is a concept that applies to properties that were acquired before April 1, 2001. The Income Tax Act of India provides for a system of taxation based on the fair market value of assets. This means that the value of an asset is determined based on its market value, and the income tax liability is calculated based on this value.
In the case of properties that were acquired before April 1, 2001, the fair market value of the property as on April 1, 2001, is considered for the purpose of calculating income tax. This is known as the “valuation/Fair Value date.” The fair market value of the property as on the valuation date is deemed to be the cost of acquisition of the property for the purpose of calculating capital gains tax.
For example, let’s say you acquired a property in 1992 for Rs. 20 lakhs. The fair market value of the property as on April 1, 2001, is determined to be Rs. 57 lakhs. If you sell the property in 2023 for Rs. 2 crore, the capital gains tax liability will be calculated based on the difference between the sale price and the fair market value of the property as on the valuation date, i.e., Rs. 2 crore – Rs. 57 lakhs = Rs. 143 lakhs.
The income tax on the fair value of property as on 01-04-2000 is an important concept to keep in mind when buying or selling properties that were acquired before April 1, 2001. It is essential to keep accurate records of the purchase price and any improvements made to the property to determine the fair market value of the property as on the valuation date. If you are unsure about how to calculate the fair market value of your property for income tax purposes, consult a qualified accountant or tax professional to ensure you are paying the correct amount of tax.
Thus, Property Valuation of Fair Market Value as on 1st April 2001 required to obtain from Government Approved and Income Tax Approved Property Valuer. File your Income Tax Return with Saving Tax on Capital Gain.
