Our building has a shop below and two floors above. One valuation or several?

One report, with the portions valued separately and shown separately. That is what allows the gain to be computed correctly if you sell only part of it.

The shop has had the same tenant since the eighties.

Then the tenancy terms matter to both the current and the 2001 value, and possibly a great deal. It is one of the first things we check here.

We are two streets from the market. Does that change the 2001 value?

Yes, and by more than people expect. The gradient away from the market was present in 2001 and we build the figure from evidence on your own stretch.

We paid the tenant to vacate last year. Is that deductible?

It is generally treated as a cost connected with the transfer and it can reduce the gain. Keep the documentation and raise it with your accountant, because it is often forgotten.

Capital Gains Valuation in Lajpat Nagar

Lajpat Nagar has been a dense, established colony since long before 2001, so most owners here fall within the 1 April 2001 rule. Where it gets interesting is buildings that are part shop and part home.

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Mixed use property and the 2001 figure

A great deal of stock here is shop cum residential, and the two portions were not worth the same in 2001 any more than they are now. The commercial part was, and is, valued largely on the income it produces.

A 2001 valuation of such a building has to establish both portions on their proper bases. A single blended rate applied to the whole building is the most common error we see in this colony, and it produces a figure that will not hold up.

Street position, then and now

Value falls off quickly with distance from Central Market, and that gradient existed in 2001 too. Street level evidence matters for a retrospective valuation exactly as it does for a current one.

Lajpat Nagar sits in category C of the circle rate schedule. The notified history for that band forms part of the evidence, alongside registered sales from the period.

Tenancies that predate the sale

Where a shop has been let for a long time, the terms affect value, and an old protected tenancy can affect it a great deal. That was true in 2001 as well, so the tenancy position at that date is part of the valuation.

We read the agreements rather than assume. It is one of the details that separates a defensible retrospective figure from an estimate.

Costs that reduce the gain

Acquisition duty and registration, genuine capital improvement with its year, brokerage on the sale, and any payment made to clear a tenancy. Each reduces what you are taxed on and each needs to be told to your accountant.

Questions we get in Lajpat Nagar

Our building has a shop below and two floors above. One valuation or several?: One report, with the portions valued separately and shown separately. That is what allows the gain to be computed correctly if you sell only part of it.
The shop has had the same tenant since the eighties.: Then the tenancy terms matter to both the current and the 2001 value, and possibly a great deal. It is one of the first things we check here.
We are two streets from the market. Does that change the 2001 value?: Yes, and by more than people expect. The gradient away from the market was present in 2001 and we build the figure from evidence on your own stretch.
We paid the tenant to vacate last year. Is that deductible?: It is generally treated as a cost connected with the transfer and it can reduce the gain. Keep the documentation and raise it with your accountant, because it is often forgotten.

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

Page last checked on 7 October 2026.