Fair Market Value as on 01.04.1981

[MOHAMED YACOOB SHARIFF]

Sir, one of my clainet has sold her property in the asst. 2010-11, which is under scuritiny now, the property was sold for Rs.1.2 crore, This property was settled by the mother of the assessee way back in 1974, Considering the rates prevaling at 01.04.1981, Assessee valeded the land and building as 19 lacs, thereby after applying the indexation there is no long term capital gains, instead there is a long term capital loss, but the Income tax officer is not accepting this.

So, pl clarify is there any way to determine the fair market value of the property as on 01.04.1981,

[Sanjeev Sharma]

In order to substantiate market value as of 1.4.1981, Valuation report from approved valuer is to be submitted.

AI Summary

Fair market value determination requires an approved valuer's report to substantiate historical cost for capital gains assessment. To substantiate a claimed fair market value as on 01.04.1981 for capital gains computation, a valuation report from an approved valuer must be produced to establish the historical market value; tax authorities may require such expert valuation evidence when contesting the assessee's adopted base value for indexation and capital gains calculation.