Which year to consider for Property tax if sold after the reconstruction?

Income Tax Act 1961
1

Which year to consider for Property tax if sold after the reconstruction?

Flat bought in 2004
Reconstruction and new flat year: 2020
Flat sold in 2025

While paying the tax, which year to consider for the original flat cost? 2004 or 2020?
Note: The owner was changed from wife (bought in 2004) to husband (2020)

3

Hi @Abhijit_G,

For property tax, you should consider both the original purchase price (2004) and the reconstruction cost (2020) in your calculation. The original flat cost (2004) applies for the base price, and the reconstruction cost (2020) is added as the improvement cost. Since the ownership changed from wife to husband in 2020, the husband’s cost of acquisition will include both the original price and the reconstruction cost.

Hope this helps!

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