Sold Property, purchase price not known & unable to get FMV Certificate

Income Tax Act 1961 Income from Capital Gains
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1

I sold a property in April 2026, which was acquired by my grandfather in 1956, no buy/purchase deed and purchase cost is available

I am unable to get FMV Certificate from valuers as it is very rural property and valuers ask for heavy fee which is not affordable (in view of transaction value)

My grandfather died in 1970, and father died in 1993 & I am a senior citizen

I sold my share of the property in April 2026 for Rs 8 lakhs

Now I want to know can I assume purchase price at Rs 1 only as of year 1956, and claim Rs 19000 towards renovation during year 1993

Can I get indexation benefits on Rs 19001 as above, I have already invested Rs 7.1 lakhs in REC Capital Gains Bonds, is it enough or i should invest full amount of Rs 8 lakhs

Pl suggest what to do in this case

2

Hey @Ramesh_Saraf,

You have two options. You can either consider the purchase price as ₹1 (for 1956), or try to arrive at a reasonable estimate from local sources like municipal records or nearby property values.

The ₹19,000 renovation cost (1993) can be added to the cost and indexed.

Now, coming to your investment:

  • After adjusting cost and indexation, your net capital gain will be lower than ₹8 lakh.
  • You’ve already invested ₹7.1 lakh in REC bonds, which is sufficient.

So you don’t need to invest the full ₹8 lakh.

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