Mr. Arjun, an Indian resident, purchased a residential house property at Lucknow on 18.08.1999 for ₹ 20.5 lakhs. The fair market value (FMV) and…

Mr. Arjun, an Indian resident, purchased a residential house property at Lucknow on 18.08.1999 for ₹ 20.5 lakhs. The fair market value (FMV) and stamp duty value (SDV) of the property as on 1.4.2001 were ₹ 28.5 lakhs and ₹ 25 lakhs, respectively. On 12.02.2016, Mr. Arjun entered into an agreement with Mr. Rakesh for sale of the property for ₹ 61 lakhs and received ₹ 5.5 lakhs as advance. However, since Mr. Rakesh failed to pay the balance consideration, Mr. Arjun forfeited the advance received. On 18.05.2025, Mr. Arjun sold the property to Mr. Suresh for ₹ 1.50 crores. The SDV of the property on the date of sale was ₹ 2 crores. Further, on 24.04.2026, Mr. Arjun purchased a residential house property at Hyderabad for ₹ 57 lakhs. Mr. Arjun has no other income during P.Y. 2025-26. The due date for furnishing his return of income is 31st July, 2026. Subsequently, on 27.01.2027, Mr. Arjun decided to sell the residential house property at Hyderabad to his brother, Mr. Mohan, for ₹ 58 lakhs. An amount of ₹25,000 was received in cash from Mr. Mohan on 10.01.2027 as advance towards the sale of the property on the date of signing the agreement to sale. The sale deed was registered on 26.03.2027 upon receipt of the balance consideration through an account payee cheque from Mr. Mohan. The SDV of the property was ₹ 61 lakhs on 27.01.2027 and 64 lakhs on 26.03.2027. Cost inflation index – P.Y. 2025-26: 376; P.Y.2024-25:363; P.Y. 2015-16: 254; P.Y. 2001-02: 100 Based on the facts of the case scenario given above, choose the most appropriate answer to the following questions: