Capital gain & cii

Tax queries 737 views 7 replies

saurabh goyal

self employed

103 Points Joined December 2011

Dear Members,

I have one query related to capital gains..

1. can we compute the capital gain tax without Indexation method (which is flat @ 10 %) in case of property ( plot/ land ) selling ?

2. How to compute the base value of the property with Indexation method which is purchased in 1966, As I 'm able to find CII (Cost Inflation index )only starting from year 1981.

3. In one special case, Head of the family expires and his two sons , one daughter & wife claims to be joint owner of that property , and they sold the property then the Amount has been received jointly by selling the property . So to exempt the capital gains tax if the jointly received money is re-invested in purchasing any property (house/flat) by one of the family members, Can other family members can also claims for capital gain tax exemption?

Regards,

Saurabh Goyal

Replies (7)

rahul bothraa

34 Points Joined July 2012

Tax payable with respect to any income arising from zero coupon bonds, listed securities and units exceeds 10% of cap gain before indexation; then the excess will be ignored for the purpose of tax payable....

in other words.. tax payable is > 10% of cap gain before IE then tax rate is 10% only and not 20%

it is applicable only for zero coupon bonds, listed securities & units.

for further details or queries u can mail me at rahboth @ gmail.com

rahul bothraa

34 Points Joined July 2012

part 2:-

any property purchased before 1-4-1981, the cost of acquistion should be taken as:-

option 1:- FMV as on 1-4-1981 (or)

option 2 :-cost of acquistion of property when purchased(1966) + cost of improvement before 1-4-1981

for any queries email me at rahboth @ gmail.com

Komal Sharma

Assistant Accountant

1887 Points Joined October 2012

In my knowldge.......

1. If the property is a long term asset means the asset is 36 months old then you have to compute capital gain by indexation method.....

and if asset is curent asset than you don't have any need to do indexation.........

2. To compute the base value of property purchased on or before 1981, your year of acqusition of that property will be assumed 1981 means cii of the year of acqusition will 100, which is cii of the year 1981, and the value of that property will assumed as the Fair Market value of that property on 1981.