Mr Nandi, a US-based NRI originally from Bengaluru's Hosur Road, landed in trouble after he filed his Income Tax Return (ITR) for Assessment Year (AY) 2020-21, declaring a long-term capital gain (LTCG) of Rs 16.33 lakh from the sale of a property for Rs 2.63 crore through a registered sale deed on January 1, 2020.
In his ITR, Mr Nandi showed only Rs 16.33 lakh as LTCG by claiming a total indexed cost of acquisition (inflation benefit) of Rs 2.3 crore, which included the benefit of indexation along with some other expenses he incurred in connection with the property. After factoring all these expenses, he arrived at the LTCG figure of Rs 16.33 lakh.
