FMV (Fair market value ) as on 01-04-2001
An Assessee bought a house property in 1985. He wants to sell the same now. In order to compute Long term capital Gains the assessee can take indexation benefit by taking cost of acquisition as purchase price or FMV as on 01-04-2001.
How can one arrive at FMV as 01-04-2001
Cost of acquisition= Rs.90,000
Date of Purchase =1985
Cost Inflation Index
2001-02 = 100
2018-19 = 280
Calculate FMV as on 01-04-2001?
First you have to take FMV from your nearest municipal office.
suppose you FMV is 120000.
COA-120000x280/100=336000.
or you can take FMV 90000
coa- 90000x280/100=252000
CAclubindia
