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LTCG on Sale of Property

Hi,

I purchased a Flat in Bangalore in 2013 for 49 Lakhs. The Sale Agreement was done for the same amount. I had paid around 10 Lakhs as the down payment. Rest was arranged from LIC HFL as a Loan (for the registration). Everything was done white via cheques and DDs.
I had spent around 6 lakhs for the interior’s same year (for which I do not have any receipts obviously, but it was done via cheques to the carpenter).
But during the Sale Deed and registration of the Flat, the builder registered it for only 19 lakhs (which was the circle rate/ govt guidance value for that area). At that time, I never had any clue what implications would it have. Though I had asked the builder several times, he said this is their usual process and he is not ready to register it for the full amount.
Now, past December 2022 I sold the property for 60 lakhs. The buyer registered the property for the same amount and the transaction is in all white. He also deducted 1% TDS (60,000) and submitted to IT.
Now there are mixed opinions from couple of Cas on the LTCG Tax.
1. After Indexation is applied, this is a capital loss and not gain. Since all the transactions are done in white, if there is a scrutiny, one says can show the loan sanctioned document, EMIs paid, cheque details/bank transactions etc. and the sale agreement has the correct details.
2. As mentioned in couple of older posts, the other say it is the amount written on the sale deed which was registered that would be considered as the final value of sale, up on which the LTCG Tax is calculated after indexation and improvement cost (only if receipts are available)
Q1. Now I am in the dilemma of whether to go ahead and declare this as capital loss or show this as a capital gain. I have no intention to buy a property sooner.

Q2. If I need to consider this as a Capital gain, (going by the sale deed amount i.e. 19 lakh) then I assume I need to apply indexation and calculate the gain which probably comes up to 20+ lakhs. Can I move this 20 Lakhs in LTCG Account before filing the ITR and use it in future to buy another property.
Please guide me on this.

Thanks in advance
Pradeep

27
Apr

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