How would the Indexation Value of a property constructed in 1959-60 in 30000/- be calculated if we want to sell it now?
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Index Value of property
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100 rupees in 1959 are equivalent to 8,342.88 rupees in 2022, now your property value equals to rs 25,02,86000.
Thank you.🙏 But can you please elaborate how did you arrive at the multiple of 8342.88?
The Fair Market Value (FMV) of the property will need to be done as on 01.04.2001 from an authorised/registered valuer. The cost of acquisition will be the FMV calculated or Rs. 30000/- whichever is higher in your case.
The cost of acquisition calculated as above will then be indexed till 2022-23 considering the FY 2001-02 as 100. The cost inflation of index for FY 2022-23 is not yet notified by the CBDT. The cost inflation index for FY 2021-22 is 317.
e.g. If asset was sold in FY 2021-22, Indexed cost of acquisition = Cost of acquisition * 317/100.
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