My father built the house in 1978. Do I use the 1978 cost?

You can use the 1 April 2001 value instead, and it will almost always be higher. That raises your cost and reduces the taxable gain.

Is my farmland sale taxable at all?

It depends on where the land is. Agricultural land beyond the distance limits from a municipality is not a capital asset. We record the location so your CA can decide.

The house is on nazul land. Does that change the 2001 value?

It can, because a leasehold interest is worth less than freehold. The report values what you actually held in 2001.

Capital gains valuation in Bhopal

Bhopal families often sell a house or a piece of farmland that has been theirs for thirty or forty years. On paper the gain is almost the whole sale price. A certified value as on 1 April 2001 is how the tax comes back to something fair.

Why the 2001 value is usually the answer

For property acquired before 1 April 2001, the law allows its value on that date to be used as the cost instead of the original price. For a house built in 1975 on a BDA plot, the 2001 value is many times what was paid.

That 2001 value has to be proved, not asserted. We build it from the guideline rates of that year, registered sales in the same colony around that date, and the construction as it then stood. Old guideline rate books and registry records are the backbone of the file.

Farmland on the edge of the city

Land along Kolar Road, Hoshangabad Road and the bypasses was farmland in 2001 and is now in colonies. Its 2001 value is its value as agricultural land then, from the khasra and B1 records of that time. Agricultural land outside the limits set by the tax law is not a capital asset at all, which can remove the tax entirely. The report records the land's location and use so your CA can apply the right rule.

What you receive

A signed report with the 1 April 2001 value, or the value at whichever date matters, the evidence, the method and the valuer's registration under section 34AB of the Wealth Tax Act, Category I.

For a rough sense of the tax first, try our free capital gains calculator.

Bhopal capital gains questions

My father built the house in 1978. Do I use the 1978 cost?: You can use the 1 April 2001 value instead, and it will almost always be higher. That raises your cost and reduces the taxable gain.
Is my farmland sale taxable at all?: It depends on where the land is. Agricultural land beyond the distance limits from a municipality is not a capital asset. We record the location so your CA can decide.
The house is on nazul land. Does that change the 2001 value?: It can, because a leasehold interest is worth less than freehold. The report values what you actually held in 2001.

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How capital gains valuation works

Checked by Parish Rao, Chartered Engineer and Government Approved Valuer (Registration number CAT-I/443/117/2000-01).

Page last checked on 8 November 2026.

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