I only have the allotment letter from the 1990s. Is that enough?

It is a good start. It proves when you acquired the property and what you paid. The 2001 value itself comes from market evidence for that sector, which we gather from records of the period.

The house was rebuilt as floors after 2001. How is that handled?

The land and the original structure take the 2001 value. The rebuild is a later improvement, added at its actual cost. We separate the two in the report so the computation is clean.

Can the 2001 value be higher than what I paid?

Usually it is, and that is the point. If you bought in 1990, the 2001 value is normally well above your purchase price, which raises your cost and lowers the taxable gain.

Capital gains valuation in Gurugram

In 2001 most of today's Gurugram was farmland, a few HUDA sectors and the first DLF phases. Sell a property you held from then and the gain on paper is enormous. A certified 1 April 2001 value is what brings it back to something fair.

Why the 2001 date matters so much here

If you bought before 1 April 2001, the law lets you use the property's value on that date as your cost instead of what you paid. In most cities that saves a lot. In Gurugram it often saves more, because prices in the late 1980s and 1990s were a small fraction of what they became.

The catch is evidence. A 2001 value has to be built from what the market looked like then. That means collector rates of that year, registered sales in the same sector or phase, and the building's condition at the time. A number without that evidence is the first thing an assessing officer questions.

The three files we see most

A DLF phase house rebuilt as floors. The original house is valued at 2001, and the later rebuild is treated as an improvement with its own cost. Getting that split right is most of the work.
An HSVP sector plot. Allotment letters and conveyance deeds give dates and prices. We value the plot at 2001 from sales in that sector, not from the allotment price.
Farmland that became urban. Land shown in the jamabandi in 2001 as agricultural, sold today inside a licensed colony. Its 2001 use decides its 2001 value, and the report says so plainly.

What you receive

A signed report stating the fair market value on 1 April 2001, the method, the comparable evidence and the valuer's registration under section 34AB of the Wealth Tax Act, Category I. Your CA uses it directly in the return.

Want a rough figure first? Our free capital gains calculator shows both ways of working out the tax, so you can see what is at stake before you commission anything.

Gurugram capital gains questions

I only have the allotment letter from the 1990s. Is that enough?: It is a good start. It proves when you acquired the property and what you paid. The 2001 value itself comes from market evidence for that sector, which we gather from records of the period.
The house was rebuilt as floors after 2001. How is that handled?: The land and the original structure take the 2001 value. The rebuild is a later improvement, added at its actual cost. We separate the two in the report so the computation is clean.
Can the 2001 value be higher than what I paid?: Usually it is, and that is the point. If you bought in 1990, the 2001 value is normally well above your purchase price, which raises your cost and lowers the taxable gain.

Everything we do in Gurugram
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 4 October 2026.

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