04 September 2008
Thank you Sir. In that case assessee will be at huge loss since he wont get the indexation benefit.
Alternatively, does the IT act allow to calculate the cost of acquisition in the following manner
Take the indexed cost of acquisition upto 2005 and then deduct 10000 from it. Lets assume indexed cost upto 2005 comes to Rs 1 lakh and after deducting 10K the cost of acquisition for 2005 comes to 90,000.
Taking 90,000 as cost, indexed cost of acquistion for 2008 comes to Rs 1,10,000. So final capital Gain comes to Rs 1,90,000.
This seems the logical method...Why IT act doesnt permit such calculation.
Is the govt trying to discourage to keep the token money and want the people to refund it in case deal doesnt fruitify
CAclubindia
