Cost Inflation Index – Capital Gain

Cost Inflation index for the Financial Year 2017-2018 has been announced to be 272

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, 2001, whichever is later.

Cost Inflation Index (Revised) – From 2001

The revised rates will be applicable from 1st April 2018 and from assessment year 2018-19 onwards..

Financial YearCost Inflation IndexFinancial YearCost Inflation Index
2001 – 021002010 – 11167
2002 – 031052011 – 12184
2003 – 041092012 – 13200
2004 – 051132013 – 14220
2005 – 061172014 – 15240
2006 – 071222015 – 16254
2007 – 081292016 – 17264
2008 – 091372017 – 18272
2009 – 10148

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 – 821001999 – 00389
1982 – 831092000 – 01406
1983 – 841162001 – 02426
1984 – 851252002 – 03447
1985 – 861332003 – 04463
1986 – 871402004 – 05480
1987 – 881502005 – 06497
1988 – 891612006 – 07519
1989 – 901722007 – 08551
1990 – 911822008 – 09582
1991 – 921992009 – 10632
1992 – 932232010 – 11711
1993 – 942442011 – 12785
1994 – 952592012 – 13852
1995 – 962812013 – 14939
1996 – 973052014 – 151024
1997 – 983312015 – 161081
1998 – 99351 2016 – 17 1125

Cost Inflation Index – Chart showing Change of Rate

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

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205 Comments on "Cost Inflation Index – Capital Gain"

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Adarsh Mohan
Guest

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

vaibhav
Guest

indexation to be calculated from the date of possession

naren
Guest

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

naren
Guest

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

vaibhav
Guest

indexation to be calculated from the date of possession

Adarsh Mohan
Guest

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

rajesh
Guest

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.

rajesh
Guest

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.

Karan Batra
Guest

What is the Cost Inflation Index for 2013-14 ?

Karan Batra
Guest

What is the Cost Inflation Index for 2013-14 ?

ATUL
Guest

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

SUJAYAN Nair
Guest

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

suraj sahu
Guest

i want to know about index cost land property

suraj sahu
Guest

i want to know about index cost land property

SUJAYAN Nair
Guest

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

ATUL
Guest

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

Vani Rai
Guest

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

Vani Rai
Guest

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

Sandeep S
Guest

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

Anne Jose
Guest

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.

Anne Jose
Guest

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.

Sandeep S
Guest

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

K Chennubotlu
Guest
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… Read more »
K Chennubotlu
Guest
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… Read more »
siddharood
Guest

thank you so much for clear information.

really Gratefull to you sir.

keep going.

Siddhu.

siddharood
Guest

thank you so much for clear information.

really Gratefull to you sir.

keep going.

Siddhu.

Swarupa Y
Guest

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?

Swarupa Y
Guest

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?

HEMANT J. SHETH
Guest

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?

Hemant Seth
Guest

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.

ASHOK KUMAR
Guest

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.

ASHOK KUMAR
Guest

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.

Hemant Seth
Guest

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.

HEMANT J. SHETH
Guest

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?

Anil
Guest

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

Anil
Guest

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

Amogh
Guest

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?

Hardik
Guest

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.

Saurav Pruthi
Guest

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

Saurav Pruthi
Guest

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

Hardik
Guest

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.

Amogh
Guest

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?

SET
Guest

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

SET
Guest

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

AA
Guest
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… Read more »
AA
Guest
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… Read more »
Prakash Vohra
Guest

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.

Prakash Vohra
Guest

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.

Shail
Guest

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

Shail
Guest

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

V K Singh
Guest
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… Read more »
ANKIT
Guest

have u got d answer to ur above question?
if yes do mail me at ankisethi05@gmail.com
plzzzz….

ANKIT
Guest

have u got d answer to ur above question?
if yes do mail me at ankisethi05@gmail.com
plzzzz….

V K Singh
Guest
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… Read more »
Ashok
Guest

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.

Ashok
Guest

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.

Sangita Singh
Guest

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.

Manikandan
Guest

yes sure that benefit will get only after 3 years

Manikandan
Guest

yes sure that benefit will get only after 3 years

Satyajit Bose
Guest

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.

Satyajit Bose
Guest

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.

Sangita Singh
Guest

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.

Durai
Guest

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

Durai
Guest

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

Gopal Krishna
Guest

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.

bharat kumar
Guest

total amount are aexempted

bharat kumar
Guest

total amount are aexempted

Gopal Krishna
Guest

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.

Himmat
Guest
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)… Read more »
Himmat
Guest
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)… Read more »
Partha
Guest
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… Read more »
Partha
Guest
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… Read more »
chirag gajera
Guest

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

chirag gajera
Guest

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

lokesh
Guest

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

CA Akash Singhai
Guest
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… Read more »
CA Akash Singhai
Guest
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… Read more »
lokesh
Guest

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

Sanjay
Guest

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.

Yogendra
Guest

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.

Yogendra
Guest

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.

Sanjay
Guest

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.

MANISH T
Guest

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

Yogendra
Guest

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.

Yogendra
Guest

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.

ASA investment
Guest

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.

ASA investment
Guest

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.

DS Sajwan
Guest

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

DS Sajwan
Guest

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

MANISH T
Guest

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

Rajan
Guest

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

Rajan
Guest

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

venkatesh
Guest

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?

Atharv Apte
Guest
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… Read more »
Atharv Apte
Guest
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… Read more »
vignesh iyer
Guest

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

vignesh iyer
Guest

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

venkatesh
Guest

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?

jayesh
Guest

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.

jayesh
Guest

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.

MP
Guest

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)?

MP
Guest

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)?

Sudha
Guest

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??

CA Karan Shah
Guest

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

CA Karan Shah
Guest

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

Sudha
Guest

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??

Suresh
Guest

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.

hh
Guest

4.85 l in bonds…

hh
Guest

4.85 l in bonds…

Pranav
Guest

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/-

Nitin Gupta
Guest

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?

Nitin Gupta
Guest

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?

Pranav
Guest

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/-

jugal kishor sud
Guest

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.

jugal kishor sud
Guest

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.

Suresh
Guest

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.

Thomas
Guest

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.

ani
Guest

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.

ani
Guest

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.

Thomas
Guest

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.

deepak
Guest

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

deepak
Guest

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

Suresh Prakash Kabra
Guest

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?

manikandan
Guest

Friend first of all your sales is not of long term asset
Becouse indexation is only for long term asset
which means you should keep the asset for more than
36 months
here ur asset is is short term so capital gain for 1st mf is
39507

manikandan
Guest

Friend first of all your sales is not of long term asset
Becouse indexation is only for long term asset
which means you should keep the asset for more than
36 months
here ur asset is is short term so capital gain for 1st mf is
39507

Suresh Prakash Kabra
Guest

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?

Bas
Guest

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

ani
Guest

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.

ani
Guest

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.

Bas
Guest

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

Dhaval Shah
Guest

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

Monil
Guest

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

Monil
Guest

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

Dhaval Shah
Guest

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

ramesh
Guest

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

ramesh
Guest

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

Laxmi
Guest

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

Laxmi
Guest

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

Sameer N
Guest
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… Read more »
Sameer N
Guest
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… Read more »
vijay
Guest

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

vijay
Guest

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

Ilyas
Guest

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

Ilyas
Guest

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

sunil jain
Guest

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

sunil jain
Guest

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

Smita
Guest

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

Smita
Guest

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

Vijay Kumar
Guest
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… Read more »
Vijay Kumar
Guest
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… Read more »
chandrakant
Guest

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.

chandrakant
Guest

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.

K A Patil
Guest
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… Read more »
K A Patil
Guest
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… Read more »
Sridhar
Guest

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

maithreyi
Guest

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

santhoshkumar
Guest

please explain 8600000 – ica (1142027)- invest 4400000 then taxable cg will be 3057973 is it..?

santhoshkumar
Guest

please explain 8600000 – ica (1142027)- invest 4400000 then taxable cg will be 3057973 is it..?

maithreyi
Guest

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

Anis Mohiuddin
Guest

What kind of documentation is acceptable to IT against expenses like ‘renovation’, completion of flat, interior works etc. so as to qualify for exemption? Or do they want just a statement of expenses without any pucca receipt particularly for labour charges, transportation of goods etc.?

Please guide.

Anis Mohiuddin
Guest

What kind of documentation is acceptable to IT against expenses like ‘renovation’, completion of flat, interior works etc. so as to qualify for exemption? Or do they want just a statement of expenses without any pucca receipt particularly for labour charges, transportation of goods etc.?

Please guide.

Sridhar
Guest

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

raja
Guest

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?

maithreyi
Guest

400000-(40000/244*582)=304590

maithreyi
Guest

400000-(40000/244*582)=304590

raja
Guest

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?

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