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Index Value of property

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Jagdish chandra kukrety

Pensioner

47 Points Posted on 13 April 2022

How would the Indexation Value of a property constructed in 1959-60 in 30000/- be calculated if we want to sell it now?

Replies (3)

Quick Summary

This discussion explains how to calculate the indexation value for a property purchased in 1959-60. The process involves determining the Fair Market Value (FMV) as of April 1st, 2001, using an authorised valuer. The cost of acquisition will be the higher of the FMV or the original purchase price of Rs. 30,000. This cost is then indexed to the current financial year using the Cost Inflation Index, though the index for 2022-23 is not yet available.

Gaurav Puri

24 Points Posted on 13 April 2022

100 rupees in 1959 are equivalent to 8,342.88 rupees in 2022, now your property value equals to rs 25,02,86000.

Jagdish chandra kukrety

Pensioner

47 Points Posted on 14 April 2022

Thank you.🙏 But can you please elaborate how did you arrive at the multiple of 8342.88?

Kev Men

486 Points Posted on 14 April 2022

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.