Capital Gains – Property

Service Description

Capital gains arising from the sale of immovable property require careful computation due to multiple variables such as indexed cost, period of holding, improvements, exemptions, and documentation requirements. At PRS&A, we handle property capital gains with a structured, evidence‑based approach that ensures accuracy, compliance, and defensible reporting. Our process begins with verifying the purchase documents, sale deed, payment proofs, stamp duty records, and any improvements made over the years. We compute the indexed cost of acquisition and improvement using the notified Cost Inflation Index, ensuring that the taxpayer receives the full benefit of inflation adjustment. We also examine the nature of the property, ownership structure, and holding period to determine whether the gain is long‑term or short‑term. For long‑term gains, we evaluate eligibility for exemptions under Sections 54, 54F, and 54EC, guiding clients on timelines, reinvestment conditions, and documentation required to substantiate claims. We reconcile the transaction with AIS/TIS and Form 26AS to ensure consistency and avoid future scrutiny. In cases involving inherited or gifted property, we verify the previous owner’s cost and holding period to compute gains correctly. Our team ensures that all calculations are transparent, audit‑ready, and aligned with the Income Tax Act. We prepare a clean capital gains statement that integrates seamlessly into the ITR and stands up to departmental verification. At PRS&A, we treat property capital gains not just as a computation task but as a compliance‑critical exercise that protects clients from future disputes, notices, or reassessments. Our goal is to ensure accurate reporting, lawful tax optimisation, and complete peace of mind.