Capital gain calculation of property purchased in may 1990 &

1. Calculate indexed cost of acqusition     

     Formula for computing indexed cost =(Index for the year of sale/ Index in the year of acquisition) x cost.

2. Deduct this (fig.1) from Sale consideration

 You will get the capital Gain

Prosess to calculate Capital Gain is revised from 01/04/2017.

as per new changes base year is change from 1981 to 2001 so you have to find the FMV of property as on 01/04/2017. CII for 2017-18 is 272.

Capital Gain = Sale considration - ( Indexed Cost of acquection + Indexed Cost of Improvement)

Indexed Cost of acquection = FMV as on 01/04/2017 X 272 / 100

Indexed Cost of Improvement = Cost X 272 / CII of that year.

In your case you have to find FMV as on 01/04/2001 first. you can find FMV as fellow.

FMV = Circle Rate of that area as on 01/04/2001 X Arae of that property.