Indexation for pre-2001 property
This query is : Resolved
04 January 2018
I had purchased a Flat for Rs 5,50,000/- in Jan 1999 which I sold in Oct 2017.
Since the Govt. has changed the Base Year for the Cost Inflation Index to FY 2001-02, to arrive at the ‘Cost of acquisition with indexation’ of my flat, can I do the following ?
1. CAN I use the Old Cost Inflation Index with base year 1981 for the years from 1999 to 2001 and then the New Cost Inflation Index with base year 2001 for the years from 2001 to 2017 ? In 2 steps as follows ?
Indexed Cost in 2001 = Rs 5,50,000 x (Old CII for 2001-02) / (Old CII for 1998-99)
Indexed Cost in 2017 = (Indexed Cost in 2001) x (New CII for 2017-18) / (New CII for 2001-02)
Since the Govt. has changed the Base Year for the Cost Inflation Index to FY 2001-02, to arrive at the ‘Cost of acquisition with indexation’ of my flat, can I do the following ?
1. CAN I use the Old Cost Inflation Index with base year 1981 for the years from 1999 to 2001 and then the New Cost Inflation Index with base year 2001 for the years from 2001 to 2017 ? In 2 steps as follows ?
Indexed Cost in 2001 = Rs 5,50,000 x (Old CII for 2001-02) / (Old CII for 1998-99)
Indexed Cost in 2017 = (Indexed Cost in 2001) x (New CII for 2017-18) / (New CII for 2001-02)
04 January 2018
You should consider market value as on 01/04/2001.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
