20 January 2021
sir, my client purchased a residential flat at mumbai in 1972 for rs 180,000 and now he wants to sell same flat inapprox value 90,00,000 now i want to know what is indexing cost and how much tax liabilities
20 January 2021
The Value of the property as on 01.04.2001 has to be taken as Cost of Acquisition. For this your client has to get valuation report for the property from an approved valuer. That cost of acquisition will be subjected to indexation. Any improvement cost incurred after 01.04.2001 will be indexed according to the Cost Inflation Index of the respective year of improvement.
CAclubindia
