Regards long term capital gain computation

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venky (Querist)
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01 April 2015 Hi Every one,

I had purchased an asset in 2005 for 200,000/-. Now it is sold for 10,00,000/-. My exact doubt is,
Is it mandatory to apply Cost of Indexation, If it is not mandatory, can we take market value (if MV is available) as cost of acquisition.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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01 April 2015 1. Cost of indexation is mandatory.
2. You cannot take market value as cost of acquisition. The value as per transfer deed or instrument (say, sale deed in case of land, etc) should be take as cost of acquisition.

You can also add, the commission paid to broker, registration charges and any other incidental charges incurred at the time of purchase, to the cost of acquisition

In addition to that, repair or renewal cost incurred in the additional year, in respect of such property can also consider for cost of acquisition.

venky

venky (Querist)
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01 April 2015 Hi Shiva,

Thank you for your response.

But, I think there is no provision that apply of cost of indexation is mandatory.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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01 April 2015 If it is not mandatory, you pay tax on 8 lacs. I don't have any problem.

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