Sold property for Rs 43.5 lakh, how can I pay lower long term capital gains tax, with or without indexation?

economictimes.indiatimes.com:

I bought a flat in Thiruvananthapuram in 1991 for Rs 3.75 lakh, which included registration charges and interior work costs at the time. This year, I sold it for Rs 43.5 lakh. I need clarification on capital gains, including indexation, as I understand real estate transactions preceding 2001 are still eligible for indexation benefits. How much tax will I have to pay? Will the gains be taxed at 20% or 12.5%?

Sudhir Kaushik Co-founder & CEO, TaxSpanner: The tax liability amounts to Rs 5,97,750 lakh with indexation, but it will be lower if you opt for the method without indexation, as it will come to Rs 4,96,875. Based on the calculation, opting for the new capital gain tax at 12.5% without indexation will be beneficial for you by Rs 1,00,875.

Also read | Capital gains tax changed, big relief for homeowners: 12.5% LTCG tax or 20% tax with indexation, which will reduce tax outgo?

ET Year-end Special Reads

Why these three sectors look promising for investors in 2025

18 top stock picks for 2025 from 6 leading brokers

Buying a home in 2025? Here's how property market can shape up

My mother-in-law received a flat free of cost after redevelopment in 2021. She had originally purchased the property in 1983. If she decides to sell it now or in the future, what base price will be considered for calculating capital gains? Additionally, what will be considered as base year, 1983 or 2021? She does not have any information on the property’s value in 2021.

Amit Maheshwari Tax Partner, AKM Global: The property originally purchased