Long term capital gain tax

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Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2013 I had a property which was purchased under self financing scheme of housing board. We started paying from 1988 till 1998 when we got the possession. Now we have sold the property.
Want to know about calculation of indexed cost of acquisition. whether the money will be indexed as per each payment year or all money paid has to be indexed in possession year i.e. 1993.

I know the formula of indexed cost of acquisition. Need to know about indexing in case of self financing scheme as described above.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 November 2013 Sale value = value adopted by stamp valuation authority.

Less : Indexed cost of acquisition
(Cost of asset acq x Index year of sale
==================
Index year of acqusition

Less: Indexed cost of improvement
(Cost of improvement x index year of sale
===================
Index year of improvement
=========================================
Balance will be LONG TERM CAPITAL gain.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 November 2013 if you received the allotment letter in 1988, then cost needs to be indexed from 1988 itself for each year.

However, if there was no allotment letter and directly possession letter was issued, you need to index the cost from the year of possession. No need to do indexation of yearly payment.

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2013 Thanks for reply.

We got letter from housing board in 1988 saying your house has been reserved as per application filed by you.

The allotment and possession letter were received in 1993 only.

Please confirm year of indexing

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 November 2013 well if the allotment letter is in 1993, then it would be advisable to claim indexation from 1993 itself.

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