How do you decide whether cost of improvement will be subject to indexation??
Suppose a property was purchased in the year 2001 and subsequently new floor has been added to the property in the year 2015 which is considered cost of improvement . The said property is afterwards sold in the year 2016. Should we consider the cost of improvement being short term or should we apply indexation on the cost of improvement as well since the original property is long term asset??
Please guide, thank you in advance..
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Indexation of Cost of improvement??
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indexation is applicable on cost of improvement also if the asset is long term, it doesn't matter even if COI was done in the preceeding previous year.
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