Comments on: Cost Inflation Index meaning and Index for all the years

By: N.V.SUNDARARAJAN

N.V.SUNDARARAJAN — Wed, 08 Feb 2012 07:28:52 +0000

KINDLY EMAIL OF IMPORT MACHINERY ENTRY

By: N.V.SUNDARARAJAN

N.V.SUNDARARAJAN — Wed, 08 Feb 2012 07:24:35 +0000

I HAVE PURCHASE SHARES AT VALUE OF RS.1200000 RATE PER SHARE 30 PURCHASE DATE 12/01/2011.
I SOLD THE SHARES AT VALUE OF RS.17,07,433 OF 10400 SHARED. SALES DATE 24.01.2012
KINDLY LET ME KNOW THE CAPITAL GAIN

By: Anand Albert

Anand Albert — Mon, 06 Feb 2012 19:18:19 +0000

Dear Sir,

I would be grateful if you could provide the answer to my following query

.
a) My grandfather purchased a plot 60 years ago and Constructed a house on it.

b)He died intestate and later after almost 40 years after his death(died in 1965) there was release deed done in favour of one of the children of this person with mutual consent of the rest of the children c). The present owner( in whose name the release deed was made) would like to dispose this plot as per current market rate . For Eg: Say the Total Consideration received would be around 50 lakhs.

d)For Calculation of Indexation how would the Price for Purchase Calculated and at what rate .( If initial purchase price records are not avialable then what will be the price ) Thanks for answering my query

By: Viswanath

Viswanath — Fri, 03 Feb 2012 17:22:43 +0000

I had purchased a property with small house in 1983 for RS.50,000.
In the year 2006 I demolished the house and built a new house with 2600 square feet plinth area and at a cost of 23 Lakhs. In 2012 I disposed the property for RS.35 Lakhs. I want to know what is the capital gain for this deal.

By: suresh

suresh — Wed, 01 Feb 2012 20:43:25 +0000

Many of us have raised important question which is what if the property purchased before 1980 (say ancient property purchased in 1965 at 1000 Rs) how CII will be calculated or benefited at the inflated property selling price in 2012? (say 2012 current cost is 20 lakhs)

@Although few people said that CII prior to 1980 will remain 100 but how true is it? Is there any notification / proof available online? Even If I assume for moment that’s true than the property purchased in 1981 will get highest tax benefit compared to person who has purchased property in 1965 say for 1000 rs? That’s absolutely ridiculous !

I will really appreciate right advice / help

By: Bala

Bala — Fri, 27 Jan 2012 03:32:02 +0000

Dear Sir,

First of all thanks for your time.

Question : I purchased a residential plot in 2002. The price per government records / registration price was much lower than the actual price paid to the seller (market value).

If for Tax purposes, I have to go by the Government Rate / Price, I will end up paying more tax than what I actually owe. My question is, which of the two amounts (Government valuation or Market Price) will be considered as “Cost of Acquisition” for Tax calculations?

Thanks in advance for your help.
Best Regards,
-Bala.

By: Vivek

Vivek — Wed, 18 Jan 2012 10:54:05 +0000

My father purchased residential property in 1995-1996 for Rs. 5 lacs, now we are planning to sell this property for Rs 20 lacks. The sale amount i.e. 20 Lacks will want to give the gift to my sister for purchasing new property , she is married and her husband want to buy the new property in his own name, then in this case kind help
1) How much capital gain tax will be charged to my father ?
2) How to save capital gain tax ? 3) whether any tax to my sister ?

By: jim

jim — Sat, 24 Dec 2011 09:28:42 +0000

I have purchased flat in 2004-2005 for 22 lacs + house improvement exps of 3 lacs = total 25 lacs. I am not planning to sell the flat now for 30 lacs.
I want to know what is the cost of indexatation for my flat in 2011-2012.
Also if I am selling for 30 lcas, then will it be loss of property ? If so, can I claim tax benefit in 2011-2012 for this loss on property?

By: vishal jaiswal

vishal jaiswal — Fri, 23 Dec 2011 13:41:42 +0000

sir/madam,
i have purchased a house in 1990 @ rs 500000. and brokerage charge 1 %. at the time of finding CII, the cost of acquisition will be 500000+brokerage or only 500000????????

By: Subodh Gupta

Subodh Gupta — Fri, 23 Dec 2011 08:34:58 +0000

Sir

I have already a house since 1995 in ghaziabad. Got allotted a plot in Noida by authority in 2001, made payments in installment up to 2007. Registry in 2007 value approx 6.00 lac . Now wish to sale the plot of Noida value 45.00 lac approx . and wants to buy a flat value 60 lac . Is long term capital gain applicable ??

By: Harjit Singh

Harjit Singh — Tue, 13 Dec 2011 07:46:57 +0000

I purchased a plot in1995 for Rs 50,000/-, Registration-4,500/-; then spent 20,000/- for filling and demarcation(I have no proof of payment except payment voucher on plain paper) then Rs 10,000/- on boundary wall erection in 2001;If i sell it for Rs. 5,00,000/- what is capital gain
Harjit

By: sangeet

sangeet — Fri, 09 Dec 2011 10:45:41 +0000

i have sale my enssestal property which purchased in 1969.but we our selling it in 2011.the circle rate of that land in1981 is rs80per sq met.and today its circle rate is rs.3360per sq meter than what capital gain we have please tell us if u can .thanks,sangeet raebareliy.

By: ganapathi manthina

ganapathi manthina — Wed, 30 Nov 2011 09:34:22 +0000

dear sir,

i was surrender my LIC’s market plus bonds,

i was invested as on 31/10/2007.
i was surrender as on 30/04/2011.

is it taxable? if taxable what the capital gain and tax amount.
give tax planing for tax saving.

By: SITARAM

SITARAM — Tue, 22 Nov 2011 08:07:59 +0000

NO COMMENTS

By: Ramnarayan

Ramnarayan — Mon, 21 Nov 2011 10:29:13 +0000

Dear Muneesh

First write the Full value of cnsideration —————-

Less cost of acquisition

785/100 * cost vaue —————–
Less cost of improvement
(index is not allowed if improvement is made before 1-4-1981

Less cost of transfer ——————

Capital gain (long)

By: Ramnarayan

Ramnarayan — Mon, 21 Nov 2011 10:21:57 +0000

Sorry captain
I want to rectify my mistake
according to central govt notification cost of inflation index for the first year in which the asset was held by assessee or the year beginning on April1,1981 , whichever is later
According to the above statement your idex will be 2009 not 1981 year index 100

By: Ramnarayan

Ramnarayan — Mon, 21 Nov 2011 10:02:13 +0000

Capt. Chawla

Cost to the previous owner become cost of the assessee .Therefore, cost of index 1981-82 is taken as base index (ie) 100. current index 785 .your capital gain will be as follows
Sale value consideration 2500000
Less cost of indexiation
785/100* 65000 510250
Less cost of improvement Nil ( you have not specified)

Less cost of transfer Nil ( not specified)

———–
Capital gain 1989750
————-

To save tax apply sec 54, 54EC , 54F

By: Ramnarayan

Ramnarayan — Mon, 21 Nov 2011 09:49:51 +0000

Dear Kunal
This problem is related to long term capital gain .you have not specified the date purchase . I am assuming you have purchased after 31st march 1987 that time cost of index was 150 and index 2010-11 is 711
As per capital gain tax
Sale value consideration 3105000
Less cost of acquistion
711/150 * 277500 = 1315350
Less cost of improvement= Nil ( you have not specified in you query)
Less brokerage and other cost
———
capital gain 1789650

you save tax take the help of sec 54,54EC,54 F
As you have not specified clearly many thing i am unable to give advice

By: KUNAL

KUNAL — Sun, 20 Nov 2011 12:38:12 +0000

I HAVE PUCHASED A FLAT IN 1987 FOR RS 277500 WHICH IS SOLD IN 2010-11 FOR RS 3105000 . PLS TELL ME HOW MUCH TAX I HAVE TO PAY

By: CAPT. N.K. CHAWLA

CAPT. N.K. CHAWLA — Tue, 15 Nov 2011 18:35:59 +0000

my parental house was built in 1978 for rs 65000, parents passed away in 1993
the house was transferred on my name in 2009 and sold in oct 2011 at rs 25 lacs, Kindly advise capital gain will be calculated from 2009 or 1993 or from 1978, I have showing in income tax return rent received from 2004

By: naresh

naresh — Mon, 07 Nov 2011 05:41:03 +0000

pvt ltd can avail index cost capital gain COST INFLATION INDEX

By: mrinal

mrinal — Thu, 03 Nov 2011 04:11:31 +0000

711

By: Simran Agarwal

Simran Agarwal — Sat, 29 Oct 2011 03:28:24 +0000

Hi,

I have purchased a plot 1.6 Lakh in 1988 and constructed the house for 20 lakh in 1995-96. Now, I have sold the house for 72 lakh couple of weeks back and purchased another house for 35 Lakh. Do I need to pay any long term tax?

Regards,
-Simran

By: Gaurav

Gaurav — Thu, 20 Oct 2011 10:40:11 +0000

Dear Ravi,

The cost inflation index will remain 100 for years prior to 1980-81.

regards

Gaurav

By: shyam

shyam — Tue, 13 Sep 2011 11:35:56 +0000

sale of agriculture land in the name of HUF Tax liability

By: RAVI SHANKAR

RAVI SHANKAR — Sun, 04 Sep 2011 00:42:34 +0000

WHAT WILL BE THE INDEXATION VALUE FOR PROPERTY BUILT IN 1974-75, FINANCIAL YEAR? IF THAT PROPERTY WERE TO BE SOLD TODAY, PL INFORM WHAT IS THE METHODOLOGY TO BE ADOPTED TO COMPUTE CAPITAL GAINS ON SALE IN 2011.

THANKS

By: rugram

rugram — Tue, 30 Aug 2011 05:40:28 +0000

This is a good article. However, it would have helped if the author had mentioned in the article the likely changes in the provisions, when the Direct Taxes Code is expected to be effective with from 1.4.2012. I request the author to write a fresh article once the DTC provisions are implemented. Thanks.

By: AG

AG — Wed, 24 Aug 2011 05:38:33 +0000

You will have to ascertain the Fair Market Value as on 01.04.1981. Compare this with the actual cost of acqusition. The higher of the two will be taken to be the cost of acqusition. This cost of acqusition will then be indexed. For example if the sale is made in FY 2011-12 and the Cost of Acqusition as determined above is Rs. 100/- then the indexed cost will be Rs. 100 x 785/100 i.e Rs. 785/-.
Now from the sale value ( example 1000/-) you should reduce the indexed cost of acqusition and any expense reltated to transfer and you will get capital gain of Rs. 215/-

By: Muneesh chawla

Muneesh chawla — Fri, 05 Aug 2011 15:02:25 +0000

How to compute capital gain on property built in 1970-71, 71-72 and sold now

By: Umapathi

Umapathi — Sat, 23 Jul 2011 23:22:16 +0000

If a person purchased a property and sells for a big amount of profit and does not pay tax then how IT Dept will take action

By: J P Singh

J P Singh — Sat, 16 Jul 2011 18:09:12 +0000

Hi Guru,

I have booked house in 1994-95. I have signed an agreement of purchase in 1999. What will the year of purchase for calculation of capital gain if I sell my house.

I am planning to buy house in July 2011. Later, I am planning to sell old house, which may be in 2 to 3 years prior to possession of new flat. Can I and obtain exemption on paying tax on capital gain?

Regards

By: SANDEEP BHATI

SANDEEP BHATI — Wed, 22 Jun 2011 08:01:56 +0000

what is purchase date

By: Anil Gange

Anil Gange — Wed, 08 Jun 2011 13:14:39 +0000

wht is short term capital gain tax for real estate….?

By: chiranjeevi

chiranjeevi — Thu, 02 Jun 2011 11:58:38 +0000

Dear sir,

What is the index cost of acquisition for financial year 2011-12. What is the LTCG tax exempted bonds for 2011-12. Rate of interest may please informed.

chiranjeevi

By: jugal kishore sud

jugal kishore sud — Sat, 28 May 2011 17:14:54 +0000

I purchases a house in June,1992 for Rs.190000/- and the conveyance deed was signed in Dec,1996.Judicial papers for Rs. 18000/-were used the; Now I have sold the said property for Rs. 14 Lacs on 18TH MAY, 2011. Please calculate the capital gains arising thereof. Also advise about the utilization of capital gains in infrastructural bonds.

Thanking you.

By: ankit

ankit — Thu, 26 May 2011 07:39:49 +0000

sir ihave puchase property in delhi for 27lacs in 2009 & sold it for 52lacs in 2011 so what will be the income tax slab for capital gain.

By: AJAY

AJAY — Wed, 25 May 2011 13:39:26 +0000

I had purchased a plot which was registered in July,2003 but the payment was made in installment from Sept,2000 to July, 2003. My question is which date will be considered as the date of investment for calculating the Capital Gain ?

By: addy

addy — Wed, 18 May 2011 17:16:11 +0000

The buying and selling price of property is considered based on the registration price or the sale agreement price. As in most of the cases there is a huge difference in them.

Kindly reply to this one

By: Hemant

Hemant — Wed, 27 Apr 2011 06:24:46 +0000

My mother purchased plot Rs.90,000/- in 1994, In 2005 we have build home at the cost of Rs.6,00,000/-on that plot, Now today i.e. Apr 2011 we are selling that home at Rs.31,00,000/- so my question is what is the capital gain tax my mother has to be pay. And how can i save that. As my mother is retired from a private company. Thanks.

By: jenith

jenith — Mon, 25 Apr 2011 04:43:52 +0000

sir what is CCI for 2011-2012?

By: Ch.N.B.Chari

Ch.N.B.Chari — Sat, 23 Apr 2011 12:21:02 +0000

what is the capital gain COST INFLATION INDEX for F.Y.2011-12?

By: amit

amit — Sun, 17 Apr 2011 08:07:23 +0000

If I sell ancestral property for X amount which is acquired decades ago by my father and we are three brothers. How do I calculate Long Term CG and tax outgo now. Also, how shall I calculate the value on 1-04-1980 for Indexation purpose if required by IT Act 1961.

By: gunjan oza

gunjan oza — Thu, 14 Apr 2011 06:21:09 +0000

Dear sir,
what is the capital gain COST INFLATION INDEX for a.y.2011-12?

By: deblina chakraborty

deblina chakraborty — Fri, 08 Apr 2011 12:17:41 +0000

SIR,
I WANT TO KNOW WHY CI INDEX IS NOT APPLICABLE FOR SHORT TERM CAPITAL ASSETS?

By: bagish

bagish — Fri, 01 Apr 2011 13:31:49 +0000

sir my purchase price of a agricultural land was of rs 5 lakhs and i had purchased it in 2005-06 f.y . and if i sell it at rs. 1.56 crores then i want to know that how much would i have to pay capital gain tax. and what are the other legal formalities which i would have 2 do??
regards
bagish

By: Manish Chawla

Manish Chawla — Tue, 22 Mar 2011 13:40:59 +0000

Since the shop was purchased in Aug 2006. The inflated cost of land will be 700000/497*711 which comes to approx Rs. 10lac plus. The capital Gain will be 51.5 lakh minus 10 lac.
Purchase new property with the proceeding or invest

By: Raju Sundararajan

Raju Sundararajan — Fri, 18 Mar 2011 05:24:02 +0000

Dear sir,

When will the CII for Fin Year 2011-12 (Ass.Year 2012-13)be published. In case i sell my flat in the financial year 2011-12 (original Date of registration 25-01-08)which factors should i consider for working out the CG? Pl guide me

By: T.K.wadhwa

T.K.wadhwa — Fri, 11 Mar 2011 12:50:01 +0000

Since the plot of land was purchased in 1975. You will have to take the valuation for the year 1981-82. Presuming the valuation is 1000/-. The inflated cost of land wii be 1000/100*711 which comes to Rs. 7110/-. The capital Gain will be 5 lakh minus 7110.

By: vikas

vikas — Fri, 04 Mar 2011 12:55:43 +0000

I had purchased a piece of land for Rs 700/- wayback in 1975 and sold it for 5 lakh. How to calculate the idexed value as the basis starts from 1981-82