Indexed cost of acquisition chart
Cost of acquisition is Rs 2 lakh. CII number for purchase year (2014-15) was 240. CII during sale year (2019-20) is 289. This would mean that your indexed cost price of acquisition would be – (2,00,000 * 289/240) = Rs 2,40,833. Cost of Acquisition of Assets directly purchased by Assessee. The cost of acquisition shall be the amount which the assessee has paid to acquire that asset. Cost Inflation Index would be applied in this case as follows:-Indexed Cost of Acquisition = Actual Cost of Acquisition * Cost Inflation Index of year of Sale Cost Inflation Index basically means the index notified by the Central Govt. with reference to average rise in the consumer price index, during the year immediately preceding the relevant previous year. However, indexed cost of acquisition is arrived at by multiplying the cost of acquisition with the change in cost inflation index since the year of acquisition or 1 April, 2001 whichever is later. The Income Tax department recognizes this and issues an annual Cost Inflation Index (CII) that allows you to index your cost of acquisition to take inflation into account. This indexed cost is then used to calculate your long term capital gains and the resultant tax on same. Now the indexed cost of acquisition will be as per the above formula i.e. Indexed Cost of Acquisition=(Rs.50 lakh/117)*272=Rs.1,16,23,931. So the Long Term Capital Gain=Selling Price-Indexed Cost of buying property=Rs.33,76,069. Once the Cost Inflation Index is applied to the cost of acquisition, it becomes an indexed cost of acquisition. If you are selling a capital asset after 2 years of its purchase, the gains will be considered as Long-Term Capital Gains.
NOTIFIED COST INFLATION INDEX UNDER SECTION 48, EXPLANATION (V) As per Notification No. So 3266(E) [No. 63/2019 (F.No. 370142/11/2019-TPL)], Dated 12-9-2019, following table should be used for the Cost Inflation Index :-
Computation of Indexed Cost of Acquisition. The following are the 2 ways through which an asset can be acquired by an assessee:- Assets acquired directly by the Formula for computing indexed cost =(Index for the year of sale/ Index in the year of acquisition) x cost. For example, if a property purchased in FY 2003-04 for Rs While calculating Long Term Capital Gains for certain capital assets, one is allowed to deduct Indexed Cost of Acquisition/Indexed Cost of Improvements from capital gains, transfer of capital assets, cost of acquistion, cost of improvement, etc. 8.5 Cases in which benefit of indexation of cost of acquisition/cost of 44. Computation Sheets. Appendix 4 -. Revenue Offices and. 47. Other Information Sources. Index. 48 consideration) received for the disposal, the cost of acquisition of the asset and any expenditure incurred on its The chart in Appendix. How does CII calculation work; Cost Inflation Index Chart; Long Term Capital Travelling expenses etc); (-) Indexed cost of acquisition; (-) Indexed cost of Indexed Cost of Acquisition = (Cost of Acquisition * Cost of the Inflation Index (CII) for the year in which the asset was sold or transferred.)/ The cost of Inflation
28 Jun 2019 You can use the indexation method to calculate the capital gain on an asset a capital gains tax (CGT) event happened to an asset you acquired before in an element of the cost base (other than those in the third element,
CII is very useful to calculate Long Term Capital Gain Tax. Capital Gain = Sales Consideration – Indexed Cost of Acquisition. Indexed Cost of Acquisition = Actual NOTIFIED COST INFLATION INDEX UNDER SECTION 48, EXPLANATION (V). As per Notification No. So 3266(E) [No. 63/2019 (F.No. 370142/11/2019-TPL)],
Indexed cost of acquisition: (Purchase cost/CII of the year of purchase)*CII of the year of sale. Applying the formula in the example, the indexed cost of acquisition comes out to be (1000000/113)*272 = Rs 24,07,079/-This is the cost which is to be used to calculate the Capital gain and tax on the profit made.
Cost of acquisition is Rs 2 lakh. CII number for purchase year (2014-15) was 240. CII during sale year (2019-20) is 289. This would mean that your indexed cost price of acquisition would be – (2,00,000 * 289/240) = Rs 2,40,833. Cost of Acquisition of Assets directly purchased by Assessee. The cost of acquisition shall be the amount which the assessee has paid to acquire that asset. Cost Inflation Index would be applied in this case as follows:-Indexed Cost of Acquisition = Actual Cost of Acquisition * Cost Inflation Index of year of Sale Cost Inflation Index basically means the index notified by the Central Govt. with reference to average rise in the consumer price index, during the year immediately preceding the relevant previous year. However, indexed cost of acquisition is arrived at by multiplying the cost of acquisition with the change in cost inflation index since the year of acquisition or 1 April, 2001 whichever is later. The Income Tax department recognizes this and issues an annual Cost Inflation Index (CII) that allows you to index your cost of acquisition to take inflation into account. This indexed cost is then used to calculate your long term capital gains and the resultant tax on same.
3 Apr 2019 Know all years' cost inflation index chart and related numbers here. FMV/ Indexed Cost of Acquisition for arriving at the figure of long term
Once the Cost Inflation Index is applied to the cost of acquisition, it becomes an indexed cost of acquisition. If you are selling a capital asset after 2 years of its purchase, the gains will be considered as Long-Term Capital Gains. Indexed cost of acquisition: (Purchase cost/CII of the year of purchase)*CII of the year of sale. Applying the formula in the example, the indexed cost of acquisition comes out to be (1000000/113)*272 = Rs 24,07,079/-This is the cost which is to be used to calculate the Capital gain and tax on the profit made. NOTIFIED COST INFLATION INDEX UNDER SECTION 48, EXPLANATION (V) As per Notification No. So 3266(E) [No. 63/2019 (F.No. 370142/11/2019-TPL)], Dated 12-9-2019, following table should be used for the Cost Inflation Index :- Cost Inflation Index FY 2017-18 is 272 (AY 2017-18) New Cost of Inflation Index (CII) come into force w.e.f. 01-04-2018; CBDT Notified Cost Inflation Index
NOTIFIED COST INFLATION INDEX UNDER SECTION 48, EXPLANATION (V) As per Notification No. So 3266(E) [No. 63/2019 (F.No. 370142/11/2019-TPL)], Dated 12-9-2019, following table should be used for the Cost Inflation Index :-