Calculation of Indexed acquisition cost of a property

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This discussion clarifies how to calculate the indexed acquisition cost of a property. It addresses the specific scenario where a property was purchased in FY 2009-10 but possession was received in FY 2010-11. The consensus is to use the CII for the financial year possession was given. Additionally, it confirms that stamp duty and registration charges can be added to the property cost for indexation purposes, provided they weren't claimed under Section 80C.

Naveen Poonia

Naveen Poonia (Querist)

04 January 2023 I Have few doubts regarding how to calculate Indexed acquisition cost of a property. These are:-

1. Property was purchased in FY 2009-10 & 85% money was paid to builder. Registration & Sale Agreement was carried out same time. But as it was under construction property, Possession was given in FY 2010-11 & rest 15% paid. So Which year CII will be used for indexation purpose?
2. Stamp duty & registration charges paid during purchasing of this property will be added in property cost or not?
Please clear my doubt.
Thank you

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 January 2023 1. Take CII for FY 2010-11.
2. Yes, if you had not claimed it u/s. 80C of the act.

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Naveen Poonia

Naveen Poonia (Querist)

04 January 2023 Cant CII can used for the year (FY2009-10) in which the registration of the property was done & maximum payment has been made? Kindly confirm

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 January 2023 For Capital gains on house property, possession is considered as date of acquisition.

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