I paid a Gunthewari fee in 2015. Does it reduce my tax?

It can, as a cost of improving the asset. We record it with the receipt so your CA can include it.

The plot was bought in 1986 and the house built in 2005. How is that handled?

The plot uses its 1 April 2001 value. The house uses its 2005 construction cost. The report gives each separately.

Can the 2001 value be proved without old papers?

Usually yes. Ready reckoner rates and registry records from that time are the evidence, and we gather them. Your own documents help, but they are not the only source.

Capital gains valuation in Nagpur

A plot bought in a Nagpur layout in the 1980s for a few thousand rupees can sell today for lakhs or crores. Without a proper cost figure the tax is calculated on almost all of it. A certified 1 April 2001 value fixes that.

The 2001 value for a layout plot

For property acquired before 1 April 2001, its value on that date can be used as the cost. For a Nagpur plot, that value is built from ready reckoner rates of the time, registered sales in the same layout, and the layout's status then. A layout that was unapproved in 2001 and regularised later was worth less in 2001 than an approved one, and the report reflects that honestly.

Regularisation fees and the cost of the plot

If you paid to regularise the plot under Gunthewari, or paid development charges to the authority, those payments may form part of the cost of the asset. They reduce the taxable gain. Keep the receipts, and the report lists them for your CA.

Houses built on old plots

Many Nagpur families bought a plot, then built on it years later. The plot takes its 2001 value or its cost, and the house takes its own construction cost, from the year it was built. We separate the two so the computation holds up.

For a quick estimate before you commission anything, try our free capital gains calculator.

Nagpur capital gains questions

I paid a Gunthewari fee in 2015. Does it reduce my tax?: It can, as a cost of improving the asset. We record it with the receipt so your CA can include it.
The plot was bought in 1986 and the house built in 2005. How is that handled?: The plot uses its 1 April 2001 value. The house uses its 2005 construction cost. The report gives each separately.
Can the 2001 value be proved without old papers?: Usually yes. Ready reckoner rates and registry records from that time are the evidence, and we gather them. Your own documents help, but they are not the only source.

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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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