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Sale of House property...
Sir,
Please advice on the Cost of acquisition with indexation (ITR2 - LTCG)
Buy: Sale Agreement - Date: 10Nov2006 Amount: Rs.25,86,000/-
Sale Deed - Date: 7Jun2008 Amount: Rs. 14,17,000/-
Sell: Sale Agreement & Deed in Nov2017 for Amount Rs.38,00,000/-
What value(Amount and CII) to be considered...
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Amlan Dutta
For sale, deed price or stamp valuation price whichever is higher shall be considered as per provision of section 50C..For purchase, cost of acquisition has to be considered......Check attached cost inflation index chart ...assume for a moment cost price is 14.17 lakhs in FY 2008 (when CII was 13...
For sale,  deed price or stamp valuation price whichever is higher  shall be considered as per provision of section 50C..For purchase, cost of acquisition has to be considered......Check attached cost inflation index chart ...assume for a moment cost  price is 14.17 lakhs in FY 2008 (when CII was 137)...now check CII in the year of sale to figure out CII factor for figuring out indexed cost for the year of sale ....since,  you have sold it now in FY 2017 18 ,, we check CII for FY 2017 18 which is 272 ...so , indexed cost price is 14.17  x  (  272/137) i.e 14.17 x 1.98 = 28.36 lakhs...since property held for more than 2 years you are eligible for capital gains.....For sale,  deed price or stamp valuation price whichever is higher  shall be considered as per provision of section 50C..For purchase, cost of acquisition has to be considered......Check attached cost inflation index chart ...assume for a moment cost  price is 14.17 lakhs in FY 2008 (when CII was 137)...now check CII in the year of sale to figure out CII factor for figuring out indexed cost for the year of sale ....since,  you have sold it now in FY 2017 18 ,, we check CII for FY 2017 18 which is 272 ...so , indexed cost price is 14.17  x  (  272/137) i.e 14.17 x 1.98 = 28.36 lakhs...since property held for more than 2 years you are eligible for capital gains.....
  • July 24, 2018
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