Understanding the Estimated FMV Result

The calculator provides an approximate estimate of your property’s Fair Market Value as on 1 April 2001.

This value may be used in capital gains calculation using the following steps:

1️⃣ Determine FMV as on 1 April 2001
2️⃣ Apply Cost Inflation Index (CII) for indexation
3️⃣ Calculate Indexed Cost of Acquisition
4️⃣ Deduct the indexed cost from the sale price

This process helps determine the taxable long-term capital gain.

Why Accurate FMV is Important

Incorrect valuation of property may result in:

• higher capital gains tax liability
• incorrect tax reporting
• potential income tax scrutiny

In many cases, property sellers obtain a valuation report or consult a tax professional before finalizing the capital gains calculation.

Frequently Asked Questions

What is FMV as on 1 April 2001?

Fair Market Value represents the estimated market price of the property as on 1 April 2001, which may be used as the cost of acquisition for capital gains calculation.

Can I use FMV instead of original purchase price?

Yes. For properties acquired before 1 April 2001, taxpayers may choose FMV as the cost of acquisition.

Is a registered valuer required for FMV?

In some cases, property owners obtain a valuation report from a registered valuer to support the declared value used in capital gains calculation.

Does FMV reduce capital gains tax?

Yes. A higher cost of acquisition may reduce the taxable capital gain when indexation is applied.

Free Resources:

• Capital Gains Tax on Property in India
• Property Purchased Before 2001
• FMV as on 1 April 2001 Guide
• Indexed Cost of Acquisition