Cost Inflation index for the Financial Year 2013-2014 has been announced to be 939

For computing long-term capital gains, knowledge of cost inflation index is necessary. The capital gains will be computed after deducting the indexed cost of acquisition (purchase) from the full value of consideration. 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 indexed cost of acquisition.In computing capital gains arising from the transfer of a long term capital asset, deduction can be claimed for the cost of acquisition and the cost of Improvement after indexing them.

 

Cost inflation Index” for any year means such index as the central government may, having regard to 75% of average rise in consumer price index for urban non manual employees for the immediately preceding previous year to such previous year by notification in the official gazette specify in this behalf.

This means an amount which bears to the cost of acquisition, the same proportion as CII for the year in which the asset is transferred bears to the CII for the first year in which the asset was held by the assessee or for the year beginning on 1st April, 1981, whichever is later.

Cost Inflation Index – For Capital Gain

The cost inflation indices for the financial years so far have been notified as under:

Financial YearCost Inflation IndexFinancial YearCost Inflation Index
1981 – 821001997 – 98331
1982 – 831091998 – 99351
1983 – 841161999 – 00389
1984 – 851252000 – 01406
1985 – 861332001 – 02426
1986 – 871402002 – 03447
1987 – 881502003 – 04463
1988 – 891612004 – 05480
1989 – 901722005 – 06497
1990 – 911822006 – 07519
1991 – 921992007 – 08551
1992 – 932232008 – 09582
1993 – 942442009 – 10632
1994 – 952592010 – 11711
1995 – 962812011 – 12785
1996 – 973052012-13852
2013 – 2014939

Cost Inflation Index – Chart showing Change of Rate

The increase in cost inflation rate has shown in the chart below.

Cost inflation index

98 Responses to Cost Inflation Index – Capital Gain

  1. comment
    maithreyi on Apr 10, 2014

    150000-(76550/632*939)=36265. Its a long term capital gains since the period of holding is more than 3 years. Tax amount is 36265*20/100=7253. If your income from all the other sources is less than Rs. 200000(BEL) you can set off the amount.

  2. comment
    raja on Mar 31, 2014

    i purchased a plot in year feb., 1994 for Rs. 40,000 & sold it on feb., 2009 for Rs. 400000, what will be capital gain?

    • comment
      maithreyi on Apr 10, 2014

      400000-(40000/244*582)=304590

  3. comment
    Sridhar on Mar 11, 2014

    Hii,

    I purchased a House in 1995 at 3.15 lacs and sold same in 2013-14 at 86 lacs.
    From that amount in the same year 2013-14 I purchased a flat at 25 lacs semi-finished (registered value)& a 19 lacs amount was spent on completion & Interior.
    my queries are ;
    1. What would be my capital gain when cii on purchase is 259 & CII sale is 939.

    Please help
    regards
    Sridhar

    • comment
      maithreyi on Apr 10, 2014

      8600000-(315000/259*939)-4400000=3057973
      this is covered exemptions under section 54 of income tax act.

  4. comment
    K A Patil on Mar 03, 2014

    Dear Sir,
    My daughter had purchased a Residential Site 50 X 80 = 4000 Sft on 9 December 1993 for a sum of Rs 1,50,000.00. She was an Indian Citizen at that time. Subsequently she moved to the US and is now a US Citizen.
    She intends to sell this property next month & is likely to get a Total price of Rs 1,60,00,000. (Rs 1 Crore, Sixty Lakhs). She has no intention to reinvest the proceeds & wants to repatriate the same to USA.
    Please advise on following:(1) How much will be the Capital Gain Tax that she has to pay.
    (2) Whether she can deduct property sale & other related expenses like Brokerage, Sale deed cost, expenses incurred on the Corporation Property Taxes paid during last 20 years also expenses on its periodical cleaning and watch / ward etc
    An advise will be appriciated lease
    Sincerely Yours
    K A Patil

  5. comment
    chandrakant on Feb 27, 2014

    If I invest a capital gain from sale of residential house into the purchase of Agriculture land within Municipal Corporation or outside municipal corporation and build a farm house. Is the same exempt from capital gains tax.

    Also if tax is payable what is the % of tax payable as capital gain tax.

  6. comment
    Vijay Kumar on Feb 25, 2014

    I had purchased a semi-finished house from a housing society Rs. 4.4 lacs. The amount was paid in installment in 2003-2004. as shown below:-
    01 Aug 2003 Booking Amount – 10,000
    04 Aug 2003 1st Installment amount – 1,50,000
    14 Aug 2003 2nd Installment amount – 73,000
    12 Jan 2004 3rd Installment amount- 1,00,000 Paid By HDFC Bank against Home Loan
    19 Jan 2004 3rd Installment amount- 1,00,000 Paid By HDFC Bank against Home Loan
    20 Mar 2004 Final Balance amount – 7,000 24 Mar 2004 Possession allotment
    Apr to Jul 2004 Expanses on Finishing – 2,10,000
    2005-2006 Cost of improvement of 1st floor- 3,50,000 3 lacs Paid By HDFC Bank new loan
    22 Nov 2012 Stamp Duty, Registration Fees and Legal Expenses- 75,000
    01 Dec 2012 to 31 Mar 2013 Cost of improvement of 2nd floor- 5,25,000
    Total Cost 16 Lacs and HDFC Bank Home Loan Balance 2.7 Lacs
    If I sell the house Apr 2014 on Rs. 30 Lacs and 2.7 lacs loan prepaid to HDFC Bank then how much long term capital gains?

  7. comment
    Smita on Feb 18, 2014

    Dear Sir/ Madam,

    I am NRI and I have purchased property in 2006 for Rs. 3,000,000.00 as per CII 30L*(939/519) = 5,427,745.66
    Capital Gain will be around 2,427,745.66. I understand that to avoid tax on capital gain I need to invest this amount in new property. Here my question is do I need to provide this investment related documents to income tax. And also please help me to provide more details from NRI perspective.
    Thanks

    • comment
      Joshua on Feb 19, 2014

      Dear Friend,
      Capital Gain is calculated only when you sell the property.. And the capital gain will be Sale Price minus the Indexed Cost.. For example if you sell the Property for 6,000,000, then your Capital Gain will be 572,255 (6,000,000 – 5,427,745). And in case if you sell the property for 5,000,000 you wont get any capital gain.. If you have capital gain you need to invest them in a property or you can deposit the money in a capital gain account scheme at a bank recognized by the Government of India..

  8. comment
    sunil jain on Feb 15, 2014

    i(individual)purchased land in rs.8000/-only in 1969 & constructed house on this land in 1970. i have no records for construction cost. now i m selling this property in rs 100 lacks in F.Y.2013-14. how much make long term capital gain tax & how? i need method with example as step by step.
    thanks

  9. comment
    Ilyas on Feb 11, 2014

    Hi,

    I purchased a property in Nov, 2012 at a price (86L) more then the property (1st house) I sold at(63L) in Jan, 2014. Will i be still liable to pay capital gain tax or covered under the property I purchased a year back?

    please advice.

    thanks

  10. comment
    vijay on Feb 10, 2014

    i take a 400 sq ft land cum shop @100000/ i sell @525000/ what is my long term capital gain tax how i avoiding it by purchasing bond

  11. comment
    Sameer N on Feb 03, 2014

    Hello,

    Purchased apartment in Aug 2003 for 7,00,000
    Sold Apartment in March 2011 for 29,00,000

    Entire amount in Capital Gains Saving Account since July 2011

    Considering CII, I have calculated the Capital Gains Tax to be paid = 2,37,365

    Can this tax be saved if I
    1) Invest in an under construction apartment to be completed only by 2015?
    2) In a villa, where Land registration will be done by Feb 2014 and priced at 30,00,000
    Construction of villa will be completed by Aug 2014?
    3) Buying only a plot of land worth 20,00,000

    Or is there any other way to save the tax, say, by now investing into relevant bonds?

    Thanks

    Sameer

  12. comment
    Laxmi on Feb 03, 2014

    Capital gain (Indexed) = 4900000 – Tax@20% 9,80,000
    Capital gain (Non Indexed) = 6300000 – tax@10% 6,30,000

    I want to know, whether i can buy a flat for 4900000(using indexation) or should i be buying a flat for 6300000 to avoid capital gain taxation?

    Many Thanks

  13. comment
    ramesh on Feb 02, 2014

    my father sold gold jwellary inherited from his parents in 2010 without taking bills. can we calculate capital gain tax on this. pls advise.

  14. comment
    Dhaval Shah on Jan 20, 2014

    Sir,

    I sold a flat in Jan 2014 at 31.5 lacs which I purchased in Dec 2010 @ Rs. 15.45 lacs in Baroda. Will you please adivse me what amount shall I consider for capital gain.

    Dhaval Shah

    • comment
      Monil on Feb 13, 2014

      Hello,
      your cost of aquisation Rs. 15.45L is equivalent to Rs. 20,40,443 in 2013. So your capital gain would be Rs. 11,09,557.

      Monil

  15. comment
    Bas on Dec 16, 2013

    Hello, my parents bought a flat in 1996 for about 10 lacs and spent about 4 lacs doing it up at the time. Both parents passed away and I inherited the flat which I have just sold for 44 lacs this year in 2013. What is my taxable capital gain ? And is iit the amount of the gain that can be invested in bonds and what time frame do I need to invest in bonds from time of sale of property? Any assistance you can provide will be very helpful.

    Thanks and best regards
    Bas

    • comment
      ani on Jan 23, 2014

      If bought after march 1996 and sold after march 2013…305/- in 1996 is 939/- in 2013 as per index. so you can calculated what 10 lacs then is what amount in your selling year. 4 lacs extra work won’t get you anything unless you have the original bills. Profit calculated this way can be invested in another property within 6 months of selling or invested in infra bonds for 10 years i believe.

  16. comment
    Suresh Prakash Kabra on Dec 12, 2013

    Sir,
    I have purchased MF for Rs 300000/- on 25 Jan 2011 & sold them on 31 dec 2012 for Rs 339507/-.
    Another set of MF were purchased on 28 Jan 2011 & sold on 12 Oct 2012 for Rs 222277/-.
    What will be the capital gain tax with indexation?

  17. comment
    deepak on Dec 10, 2013

    Hi sir my mother has purchased one house in 1978 with rs.18000 in 2010 she was expired my father also expired now we are total three owners of the house myself and two sisters now I have to sell this house in this year at rs.1500000 this amount distributed among us in three equal part how much tax I have to pay as capital gain

  18. comment
    Thomas on Nov 24, 2013

    Hi,

    Please let me know the Inflation indexed capital gain for a property which was purchased in 2010 and sold in 2013.

    Date of purchase : 08-Nov-2010 purchase value : 80 Lakhs. Renovation expense : 4.4 Lakhs.

    Date of Sale : 22-Nov-2013 Sale value : 1.05 Crore
    Selling cost : 1 Lakh.
    Based on your updates, if indexation is applied , no capital gain. Please advise.

    • comment
      ani on Jan 23, 2014

      Correct. Your 80 lacs is equivalent to 10565400.84 in 2013. You can show cost of acquisition as 84.4 lacs only if u have the original bills.

      Without the bills also you can show a loss from property of 565400.84.

  19. comment
    Suresh on Nov 02, 2013

    I purchased land in Jan’1984 at jodhpur (Rajasthan) Rs.10,000/- and sold in oct.13
    In 25lacs.
    Kindly inform the amount of capital gain tax with calculations and amount for which i have to purchase tax saving bonds.

    • comment
      hh on Nov 18, 2013

      4.85 l in bonds…

    • comment
      Pranav on Nov 23, 2013

      Capital gain will be as follows
      Sale Consideration 2500000
      Less: Indexed cost of Acquisition 80948
      So Long Term Capital Gain will Be 24,19,052
      And Tax on the same will be Flat @ 20% Rs. 4,83,810/-

      • comment
        Nitin Gupta on Dec 07, 2013

        Hi, request a clarification that in this case how much money needs to be deposited in bonds to avail exemption on tax? Is it the amount equivalent to gain or tax?

    • comment
      jugal kishor sud on Jan 13, 2014

      Purchased a plot for Rs: 20,000/- during the year 1985-86 and sold the same plot for Rs:9.00,000/- in the year 2013-14. Kindly calculate the capital gain.

  20. comment
    Sudha on Nov 02, 2013

    Sir, when equity shares purchased during the the year 1985 and sold in 2013 can have the benifit of indexation,why not debentures purchased and sold during the respective periods??

    • comment
      CA Karan Shah on Dec 10, 2013

      Bcoz debenture are not allowed to be indexed as per the income tax act

  21. comment
    MP on Oct 02, 2013

    My mother & brother have jointly purchased an apartment in April which was registered at the guidance value of 30 lacs although the actual purchase price was 68 lacs (with loan of 50 lacs).
    My Mother plans to sell her house in november for 86 lacs which was purchased for 7 lacs in Oct 1991.
    When offsetting the long term capital gains on sale of the house against purchase of the apartment, do we have to consider the registration value of the apartment (30 lacs) or the actual purchase price (68 lacs)?

  22. comment
    jayesh on Oct 01, 2013

    Dear sir,

    my query is old gold jewellery purchase in 1-03-1971 of 3000grm rate of 10200/- per 10 grm. amt is 3060000/- that all gold jewellery sale in the f.y 2013-14 date 12-09-2013 in rate of 30150/- amt rs.9045000/- so how to calculate Index cost of aquisition amount.

    plese solve the my query.

  23. comment
    venkatesh on Sep 15, 2013

    how is the indexation done for a property purchased in 1974-75 and sold in 2013-14?

    say the purchase price was 30,000 and selling price was 65,00,000? pl revert on the approx tax liability if 35,00,000 was reinvested in a new house.

    also is there a benefit for a senior citizen?

    • comment
      Atharv Apte on Sep 16, 2013

      you 1st need to find out the fair market value of the house in the prev year 81-82. You have the option to consider fair market value or actual cost as the cost of acquisition (I would suggest take higher of the 2 amounts as it would lower your tax burden). Then use this formula: Cost of acquisition*(CFI in 13-14/CFI in 81-82).
      Subtract it from your net sale consideration and you would get your capital gain.U/S 54 If u have reinvested in another property a year ago or within 3 years you would get exemption for the invested amount upto the limit of your capital gain or if the capital gain is more than re-investment then for the whole value (35,00,000 as you said).

    • comment
      vignesh iyer on Oct 09, 2013

      first computation of capital gain will be done
      74-75 will be considered at mp during 1980-81 or cost whichever is higher
      so if suppose mp at 1980-81 was 45000 then
      cost(rs 30000) or mp on 80-81(45000) higher of this is taken
      and then fy 13-14
      45000*index value of ay 14-15(presume 1000)/100
      will b indexation cost

  24. comment
    Rajan on Sep 13, 2013

    Sir,
    My Grand father bought a house in Apr 1951 @ Rs 10,000.
    Now, I want to sell it on Oct 2013 for Rs 14 Crors.

    What will be the capital gain amount..?
    Which Cost Inflation Index of the year Should be Taken?

    Thanks

  25. comment
    MANISH T on Sep 05, 2013

    Sir
    I had bought a house in Apr 2005 @ Rs 13lakhs.
    Now, I want to sell it on 08 Oct 2013 for Rs 24Lakhs.
    As per my calculation my LTCG is Rs 1,55,493/-
    Can u plz tell if it is correct?
    And also the procedure of informing IT department about utilisation of this amount.
    Thanks

    • comment
      Yogendra on Sep 10, 2013

      Hi,
      You need to consider CII for year 2005-06 and 2013-14.
      Based on this consideration there is -ve capital gain in this sale. If you have some other LTCG, then you can setoff same with this -ve value or discuss with your CA for more options.

    • comment
      ASA investment on Sep 22, 2013

      Dear Manish

      The fair value of your property as per cost indexation is 24.56 Lakhs which you have sold to 24 lakhs.There is no capital gain & hence you need not to pay any tax on it.

    • comment
      DS Sajwan on Sep 30, 2013

      Dear Manish,

      Purchase Value=13 Lakh
      Sale Value=24 Lakh

      Capital Gain=13 Lakh*939/497=24.56 Lakh

      So you dont have to pay any tax

  26. comment
    Sanjay on Sep 02, 2013

    if i invest in property in March 2013 and sell it in April 2015, will it be considered 3 years ( financial year 2012-13 to 2015-16)? does cost inlation index is same for the whole year whether asset is gained in April or next year march..does not matter.

    • comment
      Yogendra on Sep 10, 2013

      on April 2016, 3 years will be completed. And if you sale in April 2016, then FY 2012-13 and 2016-17 shall be considered.

  27. comment
    lokesh on Aug 24, 2013

    I purchased a flat in 2002-3 at 5 lacs and sold same in 2013-14 at 22 lacs against a home loan.
    In 2011-12 I purchased a flat at 25 lacs(registry value) with a 25 lacs loan with an annual interest+principle outgo of 3.43 lacs pa.

    my queries are ;
    1. Can i show nil capital gain tax adjusting the capital gain against my earlier purchase.
    2. If not, can I adjust my loan outgo against the capital gain

    Please help

    regards
    lokesh

    • comment
      CA Akash Singhai on Sep 01, 2013

      Hello

      Lokesh as per the Income Tax act, you can save your capital gain tax by investing adequate amount in another House Property either 1 year before sale or 2/3 year after sale by purchase/construct respectively.
      In your case you bought another flat on 11-12 which is 2 year before the current sale, hence you do not fall under the said clause for saving capital gain tax.
      However still you can make investment for atleast 22-10.5(Indexed cost value)=11.5L in another property to save 100% tax on your gain.

      Secondly your loan outgo has two parts Int+Principal, you can claim Int as house property loss upto the payment of Rs.150000 per annum and payment of Principal u/s 80C upto the cap of Rs.100000. These payments can be settled with any head of your income every year.

      Hope this could solve your queries.

      Akash

  28. comment
    chirag gajera on Aug 22, 2013

    Dear Sir,
    I have cii for year 2013-14 but ‘index cost of acquisition’ to needed so i requet for you.

  29. comment
    Partha on Aug 18, 2013

    Hello,

    I would like to know about short term capital gains.

    I have a flat already in my wife’s name and we’ve purchased another flat in joint name by taking loan from LIC. My queries are as below:

    The previous property was purchased as on 24th March, 2009 (Date of allottment) and took possession on (25/02/2012).

    The said property is still not registered.

    On 9th February,2013 we’ve purchased another flat and the registration and mutation has been done for this one. This has been purchased by taking loan from LIC.

    Now my questions are as below:

    1. We want to sell the first flat which is in my wife’s name by way of transferring the name through the developer by paying a 3% of transfer charges to them. We are taking tax relief on Interest on loan paid and Principal paid on 50% basis as there is a joint ownsership for the newly purchased flat. Can we take tax relief on the sale proceed as per section 54 or 54F on capital gains.

    Say the cost of the first flat is as below:

    Rs. 1,00,000 for Flat
    Rs. 20,000 for Car parking
    Rs. 1000 for Service Tax
    Rs. 500 for Installation of the electricicty
    Total=Rs.1,21,500

    Total Sale Amount Say Rs. 5,00,000
    Transfer Charges Less Rs. 15,000
    Net Amount = Rs. 4,85,000

    1.Here my question is what will be my Capital gains part:
    Rs. 4,85,000-1,21,500
    or the calculation is not correct? Is there any other component I can add on?
    2. As I have already purchased another flat with higher amount say Rs. 10,00,000 and can we adjust the capital gain amount from the newly purchased flat. As the previous flat was in the name of my wife only what amount we can adjust towards the capital gain amount against the cost of the newly purchaed flat and under which section.Also cost of the newly purchaed flat would be amount as per deed of conveyance, registration charges and mutation charges or any other I can include.
    3. By when we need to complete the sale process for adjusting the capital gains part as that has been purchsed during the previous financial year(2012-2013).
    4. For adjusting the capital gains do we need to repay loan principal or only the purchasing of new flat will suffice. What documents would be required to subit to get this tax relief for both the old flat and new flat?

  30. comment
    Himmat on Aug 13, 2013

    Dear Sir,

    In regards to a inherited property, can you please explain from which date the property gain tax will be applied from?

    For example, my house was build in 1984 on a agricultural property bought in 60′s. My gradfather passed away in 2000. Now I would like to know that if my father is to sell the property, let’s say in 2014, then from which date will the property gain tax will be applied from?

    a) The date my grandfather passed away OR
    b) The date the land was legally transferred on my father’s name? (in this case 2013) OR
    c) The date property was bought in 60′s?

    Your help will be greatly appreciated.

    Thanks!

    • comment
      Joshua on Aug 14, 2013

      Hi Himmat,

      When an asset is acquired by gift, will, Succession , inheritance or the asset is acquired at the time of partition of family [....].. , the period for which the asset was held by the previous owner should be included..

      Here the Previous Owner is your Grand Father, so the date of acquisition of Land will be the year 1960. But for indexation purpose you must estimate the fair market value of the Land as on 1st April, 1981.

      The cost of Building will be the Cost of Improvement.

  31. comment
    Gopal Krishna on Aug 05, 2013

    I own a flat since 1999. I purchased another flat in 2009 which was under construction. I had taken a loan of 30 lac for purchase of 2nd flat. The 2nd flat is going to be completed and I will take possession in a months time. Can I sell my flat puchased in 1999 and repay Rs 30 lac home loan and claim exemption from Capital gains tax for the said amount.

    • comment
      bharat kumar on Aug 17, 2013

      total amount are aexempted

  32. comment
    Durai on Aug 03, 2013

    Whether LTCG capital gain invested for a new flat in my son’s name will be eligible for exemption under section 54. If not what will be the tax I have to pay if my investment in 1989 is Rs.300,000.00 and the sale proceeds of the flats that I would sell by Sept 13 would be approximately Rs.50,00,000.00.
    Thanks in advance
    Durai

  33. comment
    Sangita Singh on Jul 18, 2013

    Yes no doubt indexation benefits will be applicable in case of long term capital gain and not for short term capital gain. For long term capital gain the period of holding must exceed 3 years but in case of share period of holding must exceed 12 months only.

    Therefore conclusion is that if your assets is share and you are selling it after 12 months then you will get indexation benefit and in case of other assets you will get indexation benefit only selling after 3 years.

    • comment
      Manikandan on Jul 26, 2013

      yes sure that benefit will get only after 3 years

    • comment
      Satyajit Bose on Jul 26, 2013

      Madam,
      As per my knowledge, shares bought by STT paid. Which is completely Income Tax free. All LTCG (STT paid) are such.
      Therefore, no need of indexation for LTCG in shares.

  34. comment
    Ashok on Jul 14, 2013

    Sir
    i had sold a property in which land is inherited by me since 1980′s and villa constructed on it in 2011 completed in 2012 and totally sold in sep. 2012. Can i show LTCG for land and STCG for building. And for building can i claim cost of acquisition/improvement as my construction cost?

    Please guide me.

  35. comment
    V K Singh on Jun 25, 2013

    I had purchased a flat from AWHO in 2002 for a sum of
    Rs 12.75 lacs. The amount was paid in installments between 1997 and 2002 as shown below:-

    Feb 1999 Regn. fee (incl. interest – 28,866

    5 Aug 97 50% of land cost – 1,00,000

    5 Nov 97 50% of land cost – 1,00,000

    5 Feb 98 Additional land cost – 37,300

    5 May 99 15% cost of DU – 1,35,000

    5 Nov 99 20% cost of DU - 2,18,500

    5 May 00 20% cost of DU – 2,18,500

    7 Nov 00 20% cost of DU – 2,18,500

    5 Jul 01 20% cost of DU – 2,18,500
    ————————————————————————————————————
    Total 12,75,166

    If I sell the house now, what will be the indexed cost? how much long term capital gains will I have to pay? I am planning to build an additional floor in the house in which I live. What is the minimum amount I should spend on this to avoid LTCG Tax?

  36. comment
    Shail on Jun 17, 2013

    I bought an apartment in 2007 Dec for around 56 lacs.
    Also, got the possession/registration in 2011 Feb .. do I understand correctly :
    - 3 years term ends in 2014 Feb and after that LTCG can be applied?
    - CII is to be used for 2007 Dec as I have been paying loans etc to banks based on the prices/interest rates then. Not based on 2011 prices when I got the possesion

  37. comment
    Prakash Vohra on Jun 13, 2013

    I have sold shares on 1st April 2013. I believe CII applicable to Capital gain arising out of this this sale is 939. Is this correct? Please guide.

  38. comment
    AA on Jun 11, 2013

    Does Section 54EC apply to former citizens of India? The situation is that the person is no longer a citizen of India, but owns residential property to sell in India. Also, it seems the seller cannot own any other property – This person does not own any property in India.
    Can he/she avoid Income taxes on Capital Gains by using Section 54EC to invest in bonds even though they do own property outside of India?
    Also, at the time of completing the transaction, it seems like tax will be deducted at source at 20%. Is that on the sale value or the net Capital Gains?

    THANKS,
    aa

  39. comment
    SET on Jun 09, 2013

    Please correct me if wrong. I heard the indexation for the financial year 13-14 is 939. Infact I also want to know if this is correct. Pls reply

    • comment
      Joshua on Jun 10, 2013

      You are right.. We have updated it..

  40. comment
    Amogh on Jun 02, 2013

    I bought a flat in march 05 for 46 Lakhs inclusive of stamp duty reg. i sold it in dec 2012 for 1 crore. i would like to do the cost indexation for this and put the gains in an REC bond. could someone help me calculate an approximate value for investing into this bond?

    • comment
      Hardik on Jun 07, 2013

      Unless u r taking any other deduction u/s 54 ur capital gain will come around 1835000. 1cr – ((46 Lakhs*852)/480).
      i.e 10000000 – 8165000 = 1835000. So dis will b the amount u would have to deposit in RCE bonds to avoid payment of capital gain tax which will be in for a lock in period of 3 years.

      • comment
        Saurav Pruthi on Jun 09, 2013

        Pls let me know why u divide 852 by 480. Wat is 480

        • comment
          Joshua on Jun 10, 2013

          480 is the Cost inflation Index for the Financial Year 2004 – 2005 (The year when he purchased the Asset) . The 852 is the CII for the Financial year 2012 – 2013 (The year he sold the Asset).

  41. comment
    Anil on May 29, 2013

    Can you please let me know where to lookup the cost of inflation index for manufactured automotive parts in india

  42. comment
    HEMANT J. SHETH on May 19, 2013

    How to calculate cost inflation index if property purchased before year 1981 when 1st CII DECLARED? MEANS I PURCHASED PROPERTY IN YEAR 1971 & SALE NOW. THEN HOW TO CALCULATE LONG TERM GAIN?

    • comment
      Hemant Seth on May 29, 2013

      I purchased a house in Ahmedabad in 1971 for Rs 23000. And sold it at Rs 15 lacs in May 2013. Do I have to pay any capital gain tax on this.

      • comment
        Joshua on May 30, 2013

        [The comment is Updated]
        Friend,
        For Properties Purchased before 1981 the Cost Inflation Index of the year 1981 Should be Taken.

        For your Second Question, the CII for FY 2013-2014 has not yet been declared by the Government as you will be paying tax on this transaction next year only.

        Update: CII for the Financial year 2013-2014 is declared. The CII is 939.

        Indexed Cost of Acquisition : Rs.23000 X 939/100 = Rs. 215970
        Your Capital Gain will be Rs.1500000 – 215970 = Rs.1284030

        • comment
          Hardik on Jun 07, 2013

          1981 Value of the property is to b found out first and than if its greater than the acquisition cost than indexation is taken on the 1981 value hence decreasing ur capital gain.

          • comment
            Joshua on Jun 10, 2013

            Thank you for Mentioning that Point..

      • comment
        ASHOK KUMAR on Jun 17, 2013

        I PURCHASED A PROPERTY IN DELHI IN 1993 FOR RS.50500.AND SOLD IT AT RS 720000. IN APRIL 2012. DO I HAVE TO PAY ANY CAPITAL GAIN TAX ON THIS . IF YES COMPUTE MY LONG TERM CAPITAL GAIN TAX.

  43. comment
    Swarupa Y on May 10, 2013

    What is 2013-14 CII and what should be the amount to be reinvested if the calculations are made with indexation and the capital gain is 42 lacs and tax is 20% i.e. 8,40,000 – question: what should be the investment if need to save on capital tax?

  44. comment
    siddharood on May 02, 2013

    thank you so much for clear information.

    really Gratefull to you sir.

    keep going.

    Siddhu.

  45. comment
    K Chennubotlu on Apr 27, 2013

    I purchased a residential house in the year 1989 for Rs.2,00,000/- and let it out the same till 2013. In April 2013 I executed a partition deed/ settlement deed, dividing the house in to five equal parts one each to my three sons and one each to myself and my wife. In May 2013 all five of us jointly sold the house and realised a consolidasted capital gains of Rs.1.50 crores. Can this capital gains can be shown @ 30 lacs each to each of the five persons. And If all of us invest individually Rs.30 lacs in specified assets u/s 54EC can we escape the capital gains. Kindly reply
    thanking you

  46. comment
    Sandeep S on Apr 26, 2013

    Deal Friend,
    My query is: Is this CII chart only applicable for Long term Capital gains or short term too?
    I mean if I sell my property before 3 years will this CII comes into existence or it would be flat % deduction as per my salary bracket?
    Please help me!
    Thanks in Advance

    • comment
      Anne Jose on Apr 30, 2013

      The benefits of indexation (CII) is applicable only to Long Term Capital Assets. Short term capital gains (Without indexation) except shares will be taxed at usual slab rates in case of an individual.

  47. comment
    Vani Rai on Apr 25, 2013

    But Sir,
    Agricultural lands situated within the specified limits(8 km.) from municipal corporation , if sold, the capital gains so arising are Taxable !

    • comment
      Joshua on May 04, 2013

      Dear Friend,
      You are right. And Such Municipality or cantonment board must have have a population of 10000 or more according to the latest census. And I also forgot to mention that Agricultural Lands Sold for Non Agricultural Purpose will be treated as capital Asset and it is clarified in the case Sarifa Bibi Mohamed Ibrahim & others 204 ITR 631 (SC).

      • comment
        Vani Rai on May 07, 2013

        Dear Sir,
        WE have an agricultural property which is situated exactly at 8 kms distance from muncipal corporation(population almost 10000). We are now planning to sell the property. Could u please specify if the sale proceeds so obtained would be taxable or not.
        Thanks & Regards

        • comment
          Joshua on May 08, 2013

          If your property is situated at exactly at 8kms distance then you can claim it as an agricultural Property.

          For your Note the distance from the municipal area is to be measured by approach road and not as per straight line distance on a horizontal plane or as per crow’s flight (Held in the case CIT, Ludhiana Vs Sh Satinder Pal Singh 188 Taxman 54 P&H).

          • comment
            Vani Rai on May 22, 2013

            Thanks a ton on that Sir.

  48. comment
    ATUL on Apr 21, 2013

    Does any one have the cost inflation index for 2013-2014?

    • comment
      Joshua on Apr 22, 2013

      Dear Friend,
      Cost Inflation Index for Assessment Year 2013-2014 is 852. What we have given in the Chart are Financial Years. Financial Year 2012-13 means Assessment Year 2013-14.
      Update: CII for the Financial year 2013-2014 is 939.

    • comment
      SUJAYAN Nair on Jun 06, 2013

      Dear Sir

      I want to know about with is the index cost for capital gain for the financial year 2013-2014.

      Your prompt reply is highly appreciated

      • comment
        Joshua on Jun 06, 2013

        CII for 2013-2014 has not been declared yet..
        Update: It is declared.. CII for the year 2013-2014 is 939.

  49. comment
    Karan Batra on Apr 18, 2013

    What is the Cost Inflation Index for 2013-14 ?

    • comment
      Joshua on Apr 22, 2013

      Dear Friend,
      Cost Inflation Index for Assessment Year 2013-2014 is 852. What we have given in the Chart are Financial Years. Financial Year 2012-13 means Assessment Year 2013-14.

  50. comment
    rajesh on Mar 31, 2013

    i bought a agriculture land of Rs 2 lakhs in 2009 and sold in 2012 in 5 lakhs.I invested these 5 lakhs rs to another property .i want to show the gain the long term capital gain .
    need to know how to show this and what are the property documents required.

    • comment
      Joshua on Mar 31, 2013

      Agricultural Lands are exempted from Capital Gains. You need not pay any Capital Gain Tax.

      • comment
        ATUL on Apr 21, 2013

        Where is it specified that agricultural lands are exempted from Capital Gains Tax and is this a certainty??

        • comment
          Joshua on Apr 22, 2013

          Dear Friend,
          Section 2(14) of the Income Tax Act, 1961, excludes rural agricultural land in India from the definition of Capital Asset. Transfer of Capital Assets only results in Capital Gain. Hence Agricultural Lands are Exempted from Capital Gains.

          • comment
            Vani Rai on May 03, 2013

            But Sir,
            Agricultural land situated within the specified limits(8 km.) from municipal corporation , if sold, the capital gains so arising are Taxable !

          • comment
            Joshua on May 04, 2013

            Dear Friend,
            You are right. And Such Municipality or cantonment board must have have a population of 10000 or more according to the latest census. And I also forgot to mention that Agricultural Lands Sold for Non Agricultural Purpose will be treated as capital Asset and it is clarified in the case Sarifa Bibi Mohamed Ibrahim & others 204 ITR 631 (SC).

  51. comment
    Adarsh Mohan on Mar 26, 2013

    Dear Sir

    Thanks for making me understand the indexation. I shall be further obiliged if you may kindly elobrate following doubts

    1 What shall be the date of investment for property if payment is staggered?
    2 What shall be the date of investment for property if completion is on a later date?

    Thanks and best regards

    • comment
      vaibhav on Apr 11, 2013

      indexation to be calculated from the date of possession

      • comment
        naren on Jan 13, 2014

        sir.i purchased n.a.plot on 1.2.2010 rs.76550 and sold on 20.4.2013 rs.150000 so please tell me long term cap.gain and short term cap. gain and tax of stcg. if possible send me calculated figurs for the same on email tax_ngbhanushaliandco@hotmail.com 98922 39383 thane

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