KNOWLEDGE BANK FROM B KANAGA SABAPATHY
LET KNOWLEDGE SPREAD
Message from B. K. sir 20/04/2023
Question :
The client acquired a vacant plot of 500 sq.yd. on 06.02.2012 through GPA from her father. She sold the same as vacant plot on 15.03.2023 for Rs. 31,00,000/-.
Can I use stamp duty rate of 01.04.2001 or on 01.04.2011 and index it for 2022-23?.
My opinion :
1. When the property was originally acquired before 01.04.2001, ascertain the fair market value as on 01.04.2001 which should not exceed the stamp duty value as on 01.04.2001.
2. If the property was originally acquired after 01.04.2001, there is no need for calculating the FMV as on 01.04.2001. But, the acquired cost can be directly indexed to arrive at the capital gains.
With best wishes,
B. KANAGA SABAPATHY
bkvaluer@gmail.com
www.bkanagasabapathy.com
About the Author:-
- Mr. B. Kanaga Sabapathy born in 1951, is a Civil Engineer who belongs to the 1972 batch of Regional Engineering College, Tiruchirappalli in Tamilnadu.
- He is a Registered valuer of the Central Board of Direct Taxes, a Professional Engineer and also a Chartered engineer. Valuation is his main profession..
- He was the National Vice-President of the Institution of Valuers (India) for 11 terms.
- He is a regular contributor of articles in the Indian Valuer Journal from the year 1985. His articles especially his regular column “Questions & Opinions” are very popular among the practising valuers in India.
- His book “Guidelines on Valuation for Banks” (2002) is used to be referred by many banks. The valuation formats designed by him were accepted and adopted as the formats by many banks in the country.
- His son K. Arun and daughter B.K. Aruna are also approved valuers and they also contribute articles to the Indian valuer journal.
- His guru: Mr. C.H. Gopinatha Rao, Chennai.
- His mentor: Mr. R.K. Gandhi, Mumbai.
- His role model: Mr. S. Rajaratnam, Chennai.
- His best students: Thousands of valuers in the country
