Capital Gains Valuation in Preet Vihar

Preet Vihar has been an established colony for decades, so the 1 April 2001 rule applies to a large share of owners here. The complication is that most plots have since been rebuilt into separately owned floors.

Old land, newer buildings

The land in Preet Vihar is old and squarely within the 2001 rule for most owners. The structure standing on it usually is not, because the great majority of original plots have been rebuilt into floors.

The correct computation values the land share as at 1 April 2001 and treats the construction as a cost of improvement, indexed from the year the work was done. Merging them into a single later acquisition date discards the 2001 benefit on the land, which in this colony is the bigger number.

What the 2001 evidence looks like here

Registered sales from around the period, the notified circle rate history for a category C colony, and the road position of the specific plot.

Road width and commercial frontage affected value in 2001 much as they do now, so the same street level care applies to a retrospective valuation as to a current one.

Costs people forget to claim

The stamp duty and registration paid at acquisition. The cost of the rebuild, with its year. Any development or conversion charge paid to the authority. Brokerage on the eventual sale.

Each of these reduces the gain, and each is routinely left out. If the receipts are gone, tell us what happened and when, because a valuer can often evidence the work even where the paperwork has not survived.

Selling below the notified value

Check the current notified figure for your road before agreeing a price. Where the sale is below it, the computation can run on the notified value, and the difference can also be taxed in the hands of the buyer.