Indexed cost of acquisition for fy 2020-11 vuqngkz

Indexed cost of acquisition for fy 2020-11

13.03.2021

Fulham72089

13 Sep 2019 The revision was done to resolve the problems faced by taxpayers while calculating LTCG/LTCL tax payable on assets acquired on or before 9 Mar 2020 Cost Inflation index also called Capital gain index is used to calculate the indexed cost of acquisition for long-term capital gain tax. Read this article to know Financial Year, Cost Inflation Index (CII). 2001-02 (Base year), 100. NOTIFIED COST INFLATION INDEX UNDER SECTION 48, EXPLANATION (V) 63/2019 (F.No. 370142/11/2019-TPL)], Dated 12-9-2019, following table should be used for the Cost Inflation Index :- Sl. No. Financial Year, Cost Inflation Index. 16 Sep 2019 In respect of assets acquired prior to 1 Apr. 2001, the assessee now has the option to use FMV/ Indexed Cost of Acquisition for arriving at the The price of a product increase overtime, and this brings down the purchasing power of money New Cost Inflation Index (CII) From FY 2001-02 To FY 2018- 19. 12 Sep 2019 So CII number helps to calculate the Inflation-adjusted Purchasing Price of Asset. This is what is known as the Indexed Cost of Acquisition). 6 Jan 2020 As per my understanding, the indexed cost of property is ₹30.17 lakh. it is assumed that the property was acquired in financial year (FY)

13 Sep 2019 Indexed Cost of Acquisition=(Rs.50 lakh/117)*272=Rs.1,16,23,931. So the Long Term Capital Gain=Selling Price-Indexed Cost of buying

As per section 48 the indexed cost of acquisition would mean the amount which bears the cost of acquisition the same proportion as cost inflation index for the year in which the asset is transferred bears to CII for the first year in which the asset is held by the assessee or the year beginning after 1 st April 1981 whichever is later. ICoA = Original cost of acquisition * (CII of the year of sale/CII of year of purchase) If you are wondering what CII is, it is nothing but Cost Inflation Index. The rate of inflation for indexation purposes have been specified by the Indian Government for every financial year since 2001-02. These rates can help you in easy computation.

The formula is as below. Indexed Cost of Acquisition=(Cost of Acquisition/Cost of Inflation Index (CII) for the year in which the asset was first held by the assessee OR FY 2001-02, whichever is later)* Cost of the Inflation Index (CII) for the year in which the asset was sold or transferred.. Let us assume that you purchased the property in FY 2005-06 at Rs.50 lakh and sold the same in FY

You can check the following table to know the cost inflation index from F.Y. In the case of long-term capital gains, indexed cost of acquisition and indexed cost Cost Inflation Index is an index used to factor in the effect of inflation in the prices Indexed Cost of Acquisition/Indexed Cost of Improvements from the sale price. New CII Index Base Year 2001-02 Notified by CBDT for FY 2017-18 onwards 3 Jan 2019 What is indexed Cost of Acquisition ? Indexation means adjustment in the purchase price of capital asset using Cost of Inflation index (CII). This

Cost inflation index is an index started in FY 1981-82 with 100 as the base. On 5th June, 2017, the government changed the base year of cost inflation index from 1981 to 2001. Also, if you hold the immovable property for 2 years and then sell it, the gains from the sale of land or building will qualify as long-term capital gains.

3 Jan 2019 What is indexed Cost of Acquisition ? Indexation means adjustment in the purchase price of capital asset using Cost of Inflation index (CII). This

The Income Tax department recognizes this and issues an annual Cost Inflation Index (CII) that allows you to index your cost of acquisition to take inflation into account. This indexed cost is then used to calculate your long term capital gains and the resultant tax on same.

13 Sep 2019 The Capital Gains will be computed after deducting the indexed cost of acquisition from the sale value. The cost of purchase of the asset will be