Gross total income

To calculate Gross Total Income, use the capital gains computed with the indexed cost option (if eligible and optimal for properties acquired before July 23, 2024), as this reflects the correct taxable capital gains figure under the law.

Thanks. But the portal appears to use the capital gains calculated without indexing the cost. How does one change it?

No, you cannot change it. The option of indexation is applied only for lower tax liability. Otherwise for all other purpose LTCG is enumerated without indexation.

For property purchased in 1980, you are in the pre-July 23, 2024 category, which means you get to choose whichever option gives you a lower tax.

In the ITR-2 offline utility or the online portal, here is what to look for:

In Schedule CG under Long-Term Capital Gains (from land and building), there is a field for cost of acquisition and improvement WITH indexation and WITHOUT indexation. Enter both computations. The ITR utility should then auto-compute both tax amounts (20% with indexation, 12.5% without) and either let you choose, or default to the lower one.

If the portal is showing only the unindexed figure, it is possible that:
- The computation cell for indexed cost has not been filled in
- The FMV as on April 1, 2001 (for properties acquired before that date) has not been entered correctly - for a 1980 property, you need the FMV as on April 1, 2001 as your base cost, not the original 1980 purchase price

For a property bought in 1980, your cost of acquisition for indexation purposes is the HIGHER of actual cost or FMV on April 1, 2001. Get a valuation report for the 2001 date if you do not already have one.

This [Cost Inflation Index and indexation guide](https://taxgarden.in/blog/cost-inflation-index-cii-table-formula-indexation-capital-gains) has the full CII table from 2001 onwards and explains the indexed cost computation step by step.

The utility is showing the tax amount correctly - the indexed cost one gives lower tax. But for calculating Gross Total Income it is taking the unindexed cost.

But is it fair to use one income for tax and another income for calculating gross total income? Because of this my surcharge rate is changing!

As I said earlier, from the date of amendment in act, for all  purpose except calcuation of tax (that to for only individual & HUF) the LTCG wil be calculated based on unindexed value only. So, for Gross total income caculation the unindexed value of LTCG is correct.

Thanks for your clarification

You are welcome.             

Are you filing under old regim or new regim

Try in old regim with indexation benifit

See  what total income is reflected

Try in. New regim with indexation

( As per my understanding indexation benifit with 20 percent tax may be in old regim only

In new regim straight  sale minus cost without indexation and pay 12.5 percent plus 4 percent cess)

Try in old as well as new regim and check??

Mr. Mahesh,

unless you are sure don't spread confusion.

Indexation benefit is available in both regime only for tax payable, if any. But the GTI will be calculated based on actual cost without ins*xation.

Ok sir

I wrote because I had read the same in one article and when I myself am not confident I should have avoided it 

Yes, but all the articals are not authentic.  

True sir

I will take care to see to it  to post only if I am certain

As I was not sure so I have used TRY and Check

Will be careful  next time

Thanks