04 January 2018
I had purchased a Flat for Rs 5,50,000/- in Jan 1999 which I sold in Oct 2017. Since the Govt. has changed the Base Year for the Cost Inflation Index to FY 2001-02, to arrive at the ‘Cost of acquisition with indexation’ of my flat, can I do the following ? 1. CAN I use the Old Cost Inflation Index with base year 1981 for the years from 1999 to 2001 and then the New Cost Inflation Index with base year 2001 for the years from 2001 to 2017 ? In 2 steps as follows ? Indexed Cost in 2001 = Rs 5,50,000 x (Old CII for 2001-02) / (Old CII for 1998-99) Indexed Cost in 2017 = (Indexed Cost in 2001) x (New CII for 2017-18) / (New CII for 2001-02)
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