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Schedule CG of ITR

26 February 2018

REF: Part B LTCG

What is the difference between?

i . Cost of acquisition with Indexation
&
ii . Cost of Improvement with Indexation

Basically between:
acquisition & Improvement regarding Long-term capital gain

thanks

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8 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 26 February 2018

ACQUISITION = PURCHASE OF LTC ASSETS

IMPROVEMENT AS CAPITAL NATURE IMPROVEMENT IN ASSETS

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(Guest)

Acquisition is taking control over a property. Improvement is making changes or additions. For example, you buy a house with one floor (acquisition) and later you construct another floor on it (improvement).

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J. K. Ratan (Compliance Advisor) (794 Points)
Replied 26 February 2018

Sir/Ma'am

Cost of acquisition:- refers to actual cost incurred on puchase of a property or construction of a property.

cost of Improvement :- Refers to capital expenses incurred to enhance the life or production capacity of a property.

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Nostradamus !! (154 Points)
Replied 26 February 2018

doubts clear thanks a lot

Nostradamus !! (154 Points)
Replied 26 February 2018

doubts clear thanks a lot

Nostradamus !! (154 Points)
Replied 26 February 2018

doubts clear thanks a lot

1 Like

Nostradamus !! (154 Points)
Replied 26 February 2018

one thing more suppose property purchase before new cost inflation index ie. before 01-04-2001 and sold now in which column have to mention indexed cost :-
Acquisition
OR
Improvement

kailas (engineer) (69 Points)
Replied 01 June 2018

Schedule CG has section F (Information about accrual/receipt of capital gain), it is required to give capital gains values for
Upto 15/6 (i): Say I have nil
16/6 to 15/9 (ii): Say I have 20,000
16/9 to 15/12 (iii): Say I have 35,000
16/12 to 15/3 (iv): Say I have 40,000
16/3 to 31/3 (v):Say I have loss of 30,000

Since negative values are not accepted for the above, shall I reduce the positive values over the three time periods earlier to arrive at total CG of 65,000?
Say, shall I report 0, 10000, 25000, 30000, 0 respectively in section F?