Capital gain problem

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Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2013 Can anybody tell me ,why debentures are not indexed in capital gain.

Pankaj Gupta

Pankaj Gupta (Expert)
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08 May 2013 To understand this you must first see why other things are indexed??

Shares, land, building etc are indexed in order to derive their present value, ie after considering inflation etc. Their present market value is always different then their acquisition value.

While it is not the case with debentures. Their value don't change over their life. For eg if a debenture was issued for Rs 1000 each 5 years ago, its present market value will be the same today and even in future. Hence they are not indexed.

Hope I solved your query...

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Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2013 Yea you have clear all my doubts,by giving example.

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