we have sold shade trees on our estates.
we have arrived FMV as on 1.4.1981 and taking 70% of sale consideration as cost and 30% as capital gain
We have indexed our cost FMV as on 1.4.1981 and reduced the amount from sale consideration which
resulted in capital loss.
Pl let me know
whether we are eligible for cost of indexation on FMV as on 1.4.1981 ie 70% of sale consideration?
Dwarakanath
Exploring Capital Gains Tax on Shade Tree Sales: Using 1981 FMV as Basis, Indexation, and Past Tax Assessments A discussion on the capital gains tax implications from the sale of shade trees highlights a query about using the fair market value (FMV) from 1981 as a basis for calculating capital gains. The original poster used 70% of the sale consideration as the cost and 30% as capital gain, leading to a capital loss after indexation. A respondent clarified that FMV should be determined by approved valuers, and indexation is applicable. Another contributor referenced past tax assessments where similar ratios were accepted but suggested revising the ratio due to increased sale values over time. The discussion referenced a specific ITAT decision but lacked detailed case information. (AI Summary)
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