Regards long term capital gain computation
This query is : Resolved
01 April 2015
Hi Every one,
I had purchased an asset in 2005 for 200,000/-. Now it is sold for 10,00,000/-. My exact doubt is,
Is it mandatory to apply Cost of Indexation, If it is not mandatory, can we take market value (if MV is available) as cost of acquisition.
I had purchased an asset in 2005 for 200,000/-. Now it is sold for 10,00,000/-. My exact doubt is,
Is it mandatory to apply Cost of Indexation, If it is not mandatory, can we take market value (if MV is available) as cost of acquisition.
01 April 2015
1. Cost of indexation is mandatory.
2. You cannot take market value as cost of acquisition. The value as per transfer deed or instrument (say, sale deed in case of land, etc) should be take as cost of acquisition.
You can also add, the commission paid to broker, registration charges and any other incidental charges incurred at the time of purchase, to the cost of acquisition
In addition to that, repair or renewal cost incurred in the additional year, in respect of such property can also consider for cost of acquisition.
2. You cannot take market value as cost of acquisition. The value as per transfer deed or instrument (say, sale deed in case of land, etc) should be take as cost of acquisition.
You can also add, the commission paid to broker, registration charges and any other incidental charges incurred at the time of purchase, to the cost of acquisition
In addition to that, repair or renewal cost incurred in the additional year, in respect of such property can also consider for cost of acquisition.
01 April 2015
Hi Shiva,
Thank you for your response.
But, I think there is no provision that apply of cost of indexation is mandatory.
Thank you for your response.
But, I think there is no provision that apply of cost of indexation is mandatory.
01 April 2015
If it is not mandatory, you pay tax on 8 lacs. I don't have any problem.
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