to take higher of fair market value of the asset as on April 1, 1981, or the actual cost of the asset as the cost of acquisition. So, you can take R40,000 or fair market value of the plot as on April 1, 1981, whichever is higher as the cost of acquisition. It may be noted that as per section 55A of the Act where the assessing officer is of opinion that value adopted by the assessee as on April 1, 1981, is higher than the fair market value as on that date, he can make reference to the valuation officer for determining the fair market value of the property.
What are the tax implications if I keep my flat unoccupied and stay in a rented house?
As per section 23 of Income Tax Act, if a person owns more than one house then the annual value of one of the houses of his choice can be considered as nil and the annual value of the other house(s) shall be determined as prescribed for the purpose of computation of income from house property. However, in your case, as you own only one house, there shall be no tax implications in this regard, unless the said property is actually rented out.
I have some loss from house property for financial year 2012-13. I could not file income tax return before July 31, 2013. Can I file carry forward the loss if I file the return now?
As per the provisions of the Income Tax Act, submission of return of loss on or before the due date under section 139(1) of the IT Act (i.e. July 31, 2013) is compulsory for availing the benefit of carry forward of losses. However, the loss under the head ‘income from house property’ can be carried forward even if the return is filed after the due