09 July 2008
Assesse has purchased UTI Bond 6.6% Tax Free ARS Bond before 3 years in 2005. Now bonds are sold and transfer, can we claim Index Value to compute capital loss if any.
09 July 2008
No. Third proviso to Sec. 48,which provides the Mode of computation of capital gains, clearly Provides that the benefit of indexation shall not apply in case of long-term capital gain arising from the transfer of a long-term capital asset being bond or debenture other than capital indexed bonds issued by the Government. The capital Indexed Bonds were never issued by the Govt. In effect, the benefit of Indexation will not be available in the case of a bond/debenture.
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