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Long term capital gain tax - building - calculation

Mohan (Accounts Mgr) (209 Points)

26 January 2019

Dear sir,

If purchased an asset in 1992-93 for Rs.20 Lakhs and sold the building in 2018-19 for Rs.80 Lakh,

what is the capital gain ... bcoz i am confuse about two charts for CII .. please let me know how the

purchase indexed cost of the asset? Thanks

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4 Replies

Aashish Bansal (Article) (698 Points)
Replied 26 January 2019

CII of year 2000 is used which is 100 and cost at 20 lac

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saurabh sawlani (2191 Points)
Replied 27 January 2019

where the capital asset become the property of the assessee before 1-4-2001 COST OF ACQUISITION MEANS THE COST OF ACQUISITION OF THE ASSET TO THE ASSESSEE OR THE FAIR MARKET VALUE OF THE ASSET ON 1-4-2001 AT THE OPTION OF THE ASSESSEE (it is advisable, you can take higher value, which will reduce the tax liability)
- indexation benefit is available

CA. Umesh kumar (ca.umesh11@gmail.com) (1465 Points)
Replied 28 January 2019

Cost inflation index base year has been changed from 1981 to 2001 as per finance act 2017. Earlier base year was 1981. that is why you find two charts for CII. this is applicable from FY 2017-18 onwards. To calculate capital gain tax you have you have to use CCI chart notified as on 5.6.2017. Further if this long term capital gain tax is not exempt then you should pay quarterly advance tax during FY 2018-19 itself to avoid interest under section 234B and 234C. For clarification you may contact.

umesh kumar- 9717597230