Index cost of acquisition 2020-20
Cost Inflation Index (CII) for PY 2019-20/ AY 2020-21 Notified by CBDT at 289 (Base Year 2001-02) In the case of transfer of short term capital asset, the amount of capital gains can be arrived at by deducting the cost of acquisition/ improvement from the sale consideration. Cost of Inflation Index FY 2019-20 AY 2020-21 for Capital Gain Below is the complete list of Cost of Inflation Index FY 2019-20 AY 2020-21 from new base year FY 2001-02 to FY 2019-20. This notification will come into force with effect from 1st day of April 2019 and will accordingly apply to the Assessment Year 2019-20 and subsequent years. 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 Inflation Index Chart. Here is the cost inflation index chart for FY 2019-2020 and AY 2020-21. Cost Inflation Index for Long-Term Capital Gains 2019-20. Knowledge of Cost Inflation Index is necessary for computing Long-Term Capital Gains. The Capital Gains will be computed after deducting the indexed cost of acquisition from the sale value. Cost inflation index is used to calculate the Indexed cost of acquisition which further helps in coming with the capital gains taxation. This calculation applies to all capital assets except the Listed Equity shares (for Stock market transactions) and Equity Mutual funds, as in both these cases the long-term capital gain is tax-free. 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.
Cost Inflation Index Chart. Here is the cost inflation index chart for FY 2019-2020 and AY 2020-21. Cost Inflation Index for Long-Term Capital Gains 2019-20. Knowledge of Cost Inflation Index is necessary for computing Long-Term Capital Gains. The Capital Gains will be computed after deducting the indexed cost of acquisition from the sale value.
(-) Indexed cost of acquisition; (-) Indexed cost of improvement/Repairing/ Maintenance; Finally Long term capital gain Tax. All the value must be travel through CII ( 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 Income-tax at the rate of 10% (without indexation benefit and foreign loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold 27 Jul 2019 1 lakhs will be taxed at the rate of 10% (without indexation). How will cost of acquisition for assets acquired on or before 31/03/2018 be
To assess 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. This figure then has to be divided by the cost inflation index of the year of purchase. But, should the property be purchased prior to the base year of cost
The formula for calculating the new Purchase price using Cost of Inflation Index is as below. 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 Index (CII) for the year in which the asset was first held by the assessee OR FY 2001-02, whichever is later. Cost Inflation Index (CII) for PY 2019-20/ AY 2020-21 Notified by CBDT at 289 (Base Year 2001-02) In the case of transfer of short term capital asset, the amount of capital gains can be arrived at by deducting the cost of acquisition/ improvement from the sale consideration. Cost of Inflation Index FY 2019-20 AY 2020-21 for Capital Gain Below is the complete list of Cost of Inflation Index FY 2019-20 AY 2020-21 from new base year FY 2001-02 to FY 2019-20. This notification will come into force with effect from 1st day of April 2019 and will accordingly apply to the Assessment Year 2019-20 and subsequent years.
9 Mar 2020 Cost Inflation index also called Capital gain index is used to calculate the indexed cost of acquisition for long-term capital gain tax. Read this
Cost Inflation Index (CII) is a measure of inflation. And it is used when computing long-term capital gains on transfer (sale,exchange etc.) of capital assets. While computing Long term Capital Gain, Cost Inflation Index (CII) is used for computing Indexed cost of acquisition and Indexed Cost of improvement. The formula is as below. Indexed Cost of Acquisition=(Cost of Acquisition/Cost of Inflation Index (CII) for the year in which the asset was first held by the assessee OR FY 2001-02, whichever is later)* Cost of the Inflation Index (CII) for the year in which the asset was sold or transferred.. Let us assume that you purchased the property in FY 2005-06 at Rs.50 lakh and sold the same in FY The indexed cost is basically linked to inflation in the country. If ur capital asset is long term, then u can index ur cost as per the index price of the year in which u sell the asset. Fr eg. If u purchased a capital asset in year 2000 for Rs.1, Indexed Cost of acquisition is defined in Explanation iii to Section 48, as the amount, which bears the same proportion to the cost of acquisition, as cost inflation index of the year when asset Step2 – Multiply Cost of Acquisition with Cost Inflation Index of the year when the asset was transferred and divide it by Cost Inflation Index of the year in which the asset was first held by the assessee. In case the Asset was acquired before 2001, then Cost Inflation Index of 2001-02 need to be used in place of Cost Inflation Index of the
Cost inflation index is used to calculate the Indexed cost of acquisition which further helps in coming with the capital gains taxation. This calculation applies to all capital assets except the Listed Equity shares (for Stock market transactions) and Equity Mutual funds, as in both these cases the long-term capital gain is tax-free.
9 Mar 2020 Cost Inflation index also called Capital gain index is used to calculate the indexed cost of acquisition for long-term capital gain tax. Read this 13 Sep 2019 The Capital Gains will be computed after deducting the indexed cost of acquisition from the sale value. The cost of purchase of the asset will be 13 Sep 2019 The indexed cost of acquisition can then be used in the calculation of Long-term capital gains (LTCG) or Long Term Capital Losses (LTCL).
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.