When a property is allotted, the date of allotment is the moment the owner gains the right to the asset. Registration of the title is only a formality and does not change the acquisition date.
In the example, the plot was allotted in 1990, payments were made in instalments, and the registration took place in 2002. Therefore, the acquisition date is 1990, not 2002.
The original cost of the plot is the total amount you paid or the price mentioned in the allotment letter. Because the property was acquired before 1 April 2001, you may elect to treat the fair market value (FMV) on that date as the cost basis for calculating long‑term capital gains.
To find the FMV as of 1 April 2001, you can:
1. Check the stamp duty ready reckoner or the circle rate published by the local stamp duty office for that year. 2. If the circle rate is unavailable, obtain a valuation certificate from a registered valuer.
Note that the FMV used for tax purposes cannot exceed the circle rate for the plot on 1 April 2001.
For personalised advice, you can send your query to askwalletwise@nw18.com. The Ask Wallet‑Wise team will try to connect you with a qualified financial expert to address your specific situation.
Remember, these rules are part of the Indian tax framework and should be verified with a certified tax professional before filing your returns.