LTCG Computation: Ready Reckoner or Actual purchase price?

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  1. Dr P M Deshpande

    Dr P M Deshpande New Member

    When calculating LTCG, which value is used?
    The actual price a seller receives or the price indicated by the Ready Reckoner (e.g. in Maharashtra).
    For example
    1. In Feb 2015, I received Rs. 100 when I sold my flat.
    2. Actually the Ready Reckoner market price is Rs. 150. Stamp duty was paid by the buyer on this price.
    Now when my (i.e. seller) LTCG is calculated, which selling price must be used - actual price (Rs. 100) or Ready Reckoner Price (Rs. 150)

    Thanks for your help
    Gurbaksh likes this.
  2. Parul_Gupta

    Parul_Gupta Active Member

    In such a case, the actual purchase price (i.e. Rs. 100) would be considered for the purpose of computing LTCG

    The ready reckoner price (i.e. Rs. 150) will not be considered
  3. Dr P M Deshpande

    Dr P M Deshpande New Member

    Many thanks.Is there any reference I can find for this in the IT Act etc?
  4. Dr P M Deshpande

    Dr P M Deshpande New Member

    Actually, I myself found an Income Tax Departmental monograph. It explains a concept called "Full Value of Consideration" and goes on to say "where the consideration received is less than the value determined by the Stamp Valuation Authority, the Full Value of Consideration is the value determined by the Stamp Valuation Authority". As we know, Stamp Valuation Authority always uses the Ready Reckoner.
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