Price of indexed acquisition of the house

Mar 6, 2018 Indexing the purchase price (tax basis) for inflation would provide savers Years ago, one could roll over a capital gain in a home by buying a  Aug 12, 2015 Cost of acquisition × Cost inflation index of the year of transfer of capital The value of a home in which you live, would be different in the year  Less: Indexed acquisition cost of the house (Purchase Price in FY12 adjusted to FY16 Cost Index) i.e. Rs 30 Lakh * Cost Index of FY16 (254)/Cost Index of FY12 

Capital gains tax (CGT), in the context of the Australian taxation system, is a tax applied to the The house, unit, etc., which is the taxpayer's main residence, and up to the first 2 Each element is indexed according to the date the cost was incurred. The taxpayer's date of acquisition and cost base for the holding are  Mar 9, 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  Example 1 : How to Calculate Indexed Cost of Acquisition Asset. Purchased House on 01-Jul-2004 = Rs 20 Lakh. Sold House on 01-May-2018 = Rs 75 Lakh   Sep 13, 2019 Finance Ministry notifies cost inflation index for FY 2019-20 as 289 used to arrive at the inflation adjusted purchasing price of assets and thereby Suppose, you purchased a house in 2008-09 for Rs 20 lakh and sold in FY  Aug 6, 2019 This CII number is important as it will be used to compute inflation adjusted long- term capital gains (LTCG) on assets such as house, gold, debt  Jun 30, 2018 Cost inflation index numbers are used for calculating fair market value of assets such as house property, jewellery as on 01.04.1981.

You just have to deduct the Indexed cost of acquisition from the Sale price. In the above example, the sale price was Rs 25 lakh and our calculated Indexed cost of acquisition was Rs 24,07,079, so the capital gain, in this case, is Rs 92921/- ( Rs 25 lakh-Rs 24.07 lakh)

Exemptions Section 54: In case the Asset sold / transferred is a residential house, and if out of the capital gains, a new residential house is constructed within 3 years, or purchased 1 year before or 2 years after the date of transfer, then exemption on Long Term Capital Gain is available on the amount of investment in the new asset to the extent of the capital gains. Indexed cost of acquisition: 4,003,559 Long term capital gain/loss: 3,496,441 Tax liability (20% of capital gain): 699,288 FMV IS FAIR MARKET VALUE BUT AS PER CII, THE PROPERTY PRICE HAS GONE UP TO Rs 15.16 LAKH IN 2001-02. NOW, THERE CAN BE TWO SCENARIOS IF BASE YEAR IS TAKEN AS 2001 SCENARIO 1 FMV in 2001-02 Rs 20 lakh (>Rs 15.16 lakh) 5,281,690 2,218,310 Accordingly, the cost of acquisition and improvement, if any, made subsequent to the purchase of property should be increased using the applicable Cost Inflation Index (CII) notified by the income This price is referred to as the Indexed Cost of Acquisition. How to calculate Long term capital gains on sale of property The cost of acquisition of property that was purchased many years ago can be indexed, using the cost inflation index numbers. Cost inflation index, is a number derived for each financial year, by the Reserve Bank of India. As explained earlier, a long-term capital gain occurs when the house is sold after completion of three years from the date of its purchase. We can calculate the long term capital gains tax on house sale by finding out the difference in the selling price of the house and the cost of indexation of the house. Once you have calculated the indexed cost of property acquisition and know the selling price, you can calculate LTCG by deducting indexed cost of property acquisition from the selling price. Say, you plan to sell a house that was bought in May 2011 for Rs50 lakh, and which is worth Rs80 lakh now. 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 increased by applying the Cost Inflation Index (CII). Once the Cost Inflation Index is applied to the cost of acquisition, it becomes an indexed cost of acquisition.

i) by allowing the cost of acquisition of the said flat amounting to Rs.45,51, 720/- to be indexed from the financial year 2001- 02 in which the conveyance deed 

Sep 13, 2019 Finance Ministry notifies cost inflation index for FY 2019-20 as 289 used to arrive at the inflation adjusted purchasing price of assets and thereby Suppose, you purchased a house in 2008-09 for Rs 20 lakh and sold in FY  Aug 6, 2019 This CII number is important as it will be used to compute inflation adjusted long- term capital gains (LTCG) on assets such as house, gold, debt  Jun 30, 2018 Cost inflation index numbers are used for calculating fair market value of assets such as house property, jewellery as on 01.04.1981.

Jun 30, 2018 Cost inflation index numbers are used for calculating fair market value of assets such as house property, jewellery as on 01.04.1981.

Example 1 : How to Calculate Indexed Cost of Acquisition Asset. Purchased House on 01-Jul-2004 = Rs 20 Lakh. Sold House on 01-May-2018 = Rs 75 Lakh   Sep 13, 2019 Finance Ministry notifies cost inflation index for FY 2019-20 as 289 used to arrive at the inflation adjusted purchasing price of assets and thereby Suppose, you purchased a house in 2008-09 for Rs 20 lakh and sold in FY  Aug 6, 2019 This CII number is important as it will be used to compute inflation adjusted long- term capital gains (LTCG) on assets such as house, gold, debt  Jun 30, 2018 Cost inflation index numbers are used for calculating fair market value of assets such as house property, jewellery as on 01.04.1981.

Indexed cost of acquisition: 4,003,559 Long term capital gain/loss: 3,496,441 Tax liability (20% of capital gain): 699,288 FMV IS FAIR MARKET VALUE BUT AS PER CII, THE PROPERTY PRICE HAS GONE UP TO Rs 15.16 LAKH IN 2001-02. NOW, THERE CAN BE TWO SCENARIOS IF BASE YEAR IS TAKEN AS 2001 SCENARIO 1 FMV in 2001-02 Rs 20 lakh (>Rs 15.16 lakh) 5,281,690 2,218,310

The resultant amount shall be indexed as per the Cost Inflation Index notified by the government at the time of sale to calculate the capital gains. However, these payments must be evidenced by Exemptions Section 54: In case the Asset sold / transferred is a residential house, and if out of the capital gains, a new residential house is constructed within 3 years, or purchased 1 year before or 2 years after the date of transfer, then exemption on Long Term Capital Gain is available on the amount of investment in the new asset to the extent of the capital gains. Indexed cost of acquisition: 4,003,559 Long term capital gain/loss: 3,496,441 Tax liability (20% of capital gain): 699,288 FMV IS FAIR MARKET VALUE BUT AS PER CII, THE PROPERTY PRICE HAS GONE UP TO Rs 15.16 LAKH IN 2001-02. NOW, THERE CAN BE TWO SCENARIOS IF BASE YEAR IS TAKEN AS 2001 SCENARIO 1 FMV in 2001-02 Rs 20 lakh (>Rs 15.16 lakh) 5,281,690 2,218,310

Apr 10, 2019 After adjusting the indexed cost of acquisition, LTCG worked out to be Rs 288.73 lakh, and after claiming deduction u/s 54F for Rs109.40 lakh  Jun 28, 2019 Under the indexation method you increase each amount included in an element of the cost base (other than those in the third element, 'costs of  May 20, 2016 So if a capital asset such as a house or a mutual fund unit is sold after 3 With Indexation, your cost of acquisition will become Rs. 1 lakh X  Mar 6, 2018 Indexing the purchase price (tax basis) for inflation would provide savers Years ago, one could roll over a capital gain in a home by buying a  Aug 12, 2015 Cost of acquisition × Cost inflation index of the year of transfer of capital The value of a home in which you live, would be different in the year  Less: Indexed acquisition cost of the house (Purchase Price in FY12 adjusted to FY16 Cost Index) i.e. Rs 30 Lakh * Cost Index of FY16 (254)/Cost Index of FY12  Jan 25, 2011 Capital Gain = (Sale Price MINUS Indexed Cost of Acquisition). So if you have sold a house and some mutual funds, the calculation will take