Index cost of acquisition
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 June 2013
what does meaning of Index Cost of Acquisition and improvement.......
Dintakurthi Tirumala
(Expert)
25 June 2013
There is some inflation of rupee or values for year to year so the government computing such inflation rate and providing such inflation points for each year.
So computing the original cost with the inflation points(called Indexation rate) is called the Index cost if such cost is related to acquisition then it is called indexed cost of acquisition and if it is for Improvement cost then called as indexed cost of improvement.
Index cost computation = Original cost * Index rate in the year of computation(current year)/Index rate in the year of actually incurred.
OM SAI SRI SAI JAI JAI SAI
So computing the original cost with the inflation points(called Indexation rate) is called the Index cost if such cost is related to acquisition then it is called indexed cost of acquisition and if it is for Improvement cost then called as indexed cost of improvement.
Index cost computation = Original cost * Index rate in the year of computation(current year)/Index rate in the year of actually incurred.
OM SAI SRI SAI JAI JAI SAI
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