## Calculation of indexed cost of acquisition

Calculate Indexed Cost and LTCG upto 31.03.2017, Indexed Cost of Aquisition, Indexed Cost of Improvement for Long Term Assets, Exemption u/s 54 / 54F.

So, indexed cost of acquisition would be 55,10,563 [25,00,000 * (939/426)]. In the same way, adjust additional construction cost against inflation. CII for the year in which the new floor was added is 497. So, the indexed cost for this will be 18,89,336 [10,00,000 * (939/497)]. Indexed Cost of Acquisition = Actual Purchase Price * (Index in year of Sale / Index in Year of Purchase) If the property is purchased before 2001, then you need to get the Fair market value of the property in 2001 and the use that for Indexed cost. What is the indexed cost of acquisition? Here, the asset is purchased before the base year. Hence the cost of acquisition = Higher of actual cost or FMV on 1 st April 2001. i.e. Cost of Acquisition = Rs. 3,20,000. CII for the year 2001-02 and 2016-17 is 100 and 264 respectively. Indexed cost of acquisition = 3,20,000 x 264/100 = Rs. 8,44,800. What is the formula for calculating indexed cost of acquisition? To derive the indexed cost, the seller needs to multiply the property's cost of acquisition with the cost inflation index, as notified by the tax authorities for the year of transfer. Is GST included for calculation indexed cost of acquisition? Hi, I can see that Stamp duty and registraion charges shall form part of cost of acquisition of property and can be indexed. Does Property tax paid over many years from part of cost of acquistion and how do you index this? Rgds Ram 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. Calculate Indexed Cost and LTCG upto 31.03.2017, Indexed Cost of Aquisition, Indexed Cost of Improvement for Long Term Assets, Exemption u/s 54 / 54F.

## Cost Inflation Index is used to calculate the estimated increase in prices of goods Indexed cost of acquisition = Cost of Acquisition X {CII (for the year it is being

6 Jan 2020 Capital gains or loss is calculated as the difference between the sale consideration ( ₹25 lakh) and the indexed cost of acquisition (ICOA). 7 Oct 2019 Use your indexed cost or costs when you calculate your CGT and file your The purchase price and the acquisition costs can have Indexation  Tribunal is that appellant is entitled to indexed cost of acquisition for the period on or after 5th January computation and cost of acquisition, improvement  25 Dec 2019 Factor in cost of acquisition, holding period to calculate tax on equity MF mutual fund, LTCG will be taxed at 20% with benefit of indexation. Cost Inflation Index is used to calculate the estimated increase in prices of goods Indexed cost of acquisition = Cost of Acquisition X {CII (for the year it is being  i) by allowing the cost of acquisition of the said flat amounting to Rs.45,51, 720/- to The details of indexation as described in computation of capital gain by the  Step3: Now, note down the base year's Consumer Inflation Index. Step4: Multiply the Original Cost of acquisition with CII noted in step 2 and divide the same by CII

### 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,

30 Jun 2018 Cost inflation index numbers are used for calculating while calculating capital gains tax payable on the assets acquired on or before 1981. 13 Sep 2019 Finance Ministry notifies cost inflation index for FY 2019-20 as 289 while calculating LTCG/LTCL tax payable on assets acquired on or before  Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition. Indexed cost of  Calculate Indexed Cost and LTCG upto 31.03.2017, Indexed Cost of Aquisition, Indexed Cost A1, Select Financial Year of Purchase / Acquisition of the Asset. 6 Jan 2020 Capital gains or loss is calculated as the difference between the sale consideration ( ₹25 lakh) and the indexed cost of acquisition (ICOA).

### The result will be the indexed cost of acquisition which will be higher than the This is the benefit that indexation proffers to the investor when calculating the tax

13 Sep 2019 Finance Ministry notifies cost inflation index for FY 2019-20 as 289 while calculating LTCG/LTCL tax payable on assets acquired on or before  Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition. Indexed cost of  Calculate Indexed Cost and LTCG upto 31.03.2017, Indexed Cost of Aquisition, Indexed Cost A1, Select Financial Year of Purchase / Acquisition of the Asset. 6 Jan 2020 Capital gains or loss is calculated as the difference between the sale consideration ( ₹25 lakh) and the indexed cost of acquisition (ICOA). 7 Oct 2019 Use your indexed cost or costs when you calculate your CGT and file your The purchase price and the acquisition costs can have Indexation

## 30 Jun 2018 Cost inflation index numbers are used for calculating while calculating capital gains tax payable on the assets acquired on or before 1981.

While calculating Long Term Capital Gains for certain capital assets, one is allowed to deduct Indexed Cost of Acquisition/Indexed Cost of Improvements from  Add: Expenses relating to acquisition (e.g. brokerage, registration charges, legal expenses etc.) A5, Total Cost of Acquisition of the Immovable Property. A6  For this, you shall need to calculate the indexed cost of acquisition, which is computed as follows: Cost of acquisition x Cost inflation index of the year in which  3 Jan 2019 How to calculate Indexed Cost of Acquisition? General Rule for calculating Indexed Cost of Acquisition is as follows: Purchase Cost of the Asset  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 or cost inflation index helps you to calculate inflation value on capital gains of selling any asset, the purchase price is called the indexed cost of acquisition.

Step3: Now, note down the base year's Consumer Inflation Index. Step4: Multiply the Original Cost of acquisition with CII noted in step 2 and divide the same by CII   While calculating Long Term Capital Gains for certain capital assets, one is allowed to deduct Indexed Cost of Acquisition/Indexed Cost of Improvements from  Add: Expenses relating to acquisition (e.g. brokerage, registration charges, legal expenses etc.) A5, Total Cost of Acquisition of the Immovable Property. A6  For this, you shall need to calculate the indexed cost of acquisition, which is computed as follows: Cost of acquisition x Cost inflation index of the year in which