If an asset is purchsed before 1981 (1979 in this case) what should be cost inflation index to calculate capital gain if same is sold now in 2013.
Is there any upper limit to invest in capital gain bonds ?
7 Replies
CA Parul Saxena
(CA)
(8488 Points)
Replied 31 August 2013
Capital gain index for the year 1981 to be considered i.e.100
raghavender upadhyay
(B.Com, LLB, CA FINAL)
(331 Points)
Replied 31 August 2013
CII is taken as 100 for the year 1981 and Fair Market Value of the asset on 1.04.1981 or purchase value as on 1979 which ever is higher to be taken for cost of index computation.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 31 August 2013
Dear Nilesh,
Cost Inflation Index for the asset purchased before 1981 would be considered as 100... as also said by others...
And yes, the upper limit for investment in Capital Gain Bonds is Rs. 50 lakhs u/s 54EC.
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
NAGASAI.K
(Article Assistant)
(193 Points)
Replied 31 August 2013
Cost inflation index for the year 1981 be taken as 100 .....even if the asset purchased or acquired before 1981 also
CA Pallav Singhania
(IT System Auditor)
(33362 Points)
Replied 02 September 2013
Agreed with everyone.
CII will be taken as 1981 that is 100,
as the Indexation introduced on 1981-82...
However, The Cost of the Capital asset if acquired will be the FMV on 1981-82,
nilesh
(PROPRIETOR)
(208 Points)
Replied 02 September 2013
how to get the fair market value of the property in 1981 if the purchase cost is 100000/- in 19778-79
CA Pallav Singhania
(IT System Auditor)
(33362 Points)
Replied 02 September 2013
@ Nilesh..
If FMV is provided then u should take otherwise Cost of the Asset would be htaken into the consideration...
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