Capital gain for asset purchased before 1981

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If an asset is purchsed before 1981 (1979 in this case) what should be cost inflation index to calculate capital gain if same is sold now in 2013.

Is there any upper limit to invest in capital gain bonds ?

 

Replies (7)

Capital gain index for the year 1981 to be considered i.e.100

CII is taken as  100 for the year 1981 and Fair Market Value of the asset on 1.04.1981 or purchase value as on 1979 which ever is higher to be taken for cost of index computation.

Dear Nilesh,

Cost Inflation Index for the asset purchased before 1981 would be considered as 100... as also said by others...

And yes, the upper limit for investment in Capital Gain Bonds is Rs. 50 lakhs u/s 54EC.

 

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Cost inflation index for the year 1981 be taken as 100 .....even if the asset purchased  or acquired before 1981 also 

Agreed with everyone.

CII will be taken as 1981 that is 100,

as the Indexation introduced on 1981-82...

However, The Cost of the Capital asset  if acquired will be the FMV on 1981-82,

how to get the fair market value of the property in 1981 if the purchase cost is 100000/- in 19778-79

@ Nilesh..

If FMV is provided then u should take otherwise Cost of the Asset would be htaken into the consideration...

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