How to arrive at acquisition cost while computing ltcg?
This query is : Resolved
12 February 2012
I bought a flat in 2004. The cost of the flat was Rs. 28 Lakhs, out of which I made a down-payment of Rs. 4 Lakhs, and the rest Rs. 24 Lakhs was financed with a housing loan. I have been paying an EMI on Rs. 20000 per month since then. Now, in 2012, I am selling this apartment. Currently the outstanding prinicipal on that loan is Rs. 12 Lakhs. My expected price for the sale is Rs. 80 Lakhs, out of which I will use Rs. 12 Lakhs to close the loan. So, for capital gains purpose, what is the acquisition price of this flat? Is it 4Lakhs? Is it 28 Lakhs? While using indexation to compute the acquisition price, do I index the principal components paid on the loan on an yearly basis? Or do I use the index value for the 2004-2005 year on the entire 28 Lakhs?
Abuzar Azmi
(Expert)
12 February 2012
Aquisition price would be Rs 28 Lacs.
Index Value would be Rs 28 Lacs and year would be 2004-2005.
Index Value would be Rs 28 Lacs and year would be 2004-2005.
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