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Section 10(38)

Arundhati Raychaudhuri (no designation) (340 Points)

09 March 2012

u/s 10(38) , will the cost of acquisition be indexed or not?

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7 Replies

RaGHuRaM (The Easy are never Good and the Good are never Easy....) (4952 Points)
Replied 10 March 2012

Indexation is available for long term capital assets.if sec 10(38) is applicable Ltcg is exempt from tax. If it is not exempt, then indexation can be claimed but CG is taxable @ 20%. If indexation is not availed then taxable @ 10%. This benefit can be exercised at the option of assessee.

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RaGHuRaM (The Easy are never Good and the Good are never Easy....) (4952 Points)
Replied 10 March 2012

So the cost may be indexed as explained above if it is not covered by securities transaction tax

Shewta (Accountant) (117 Points)
Replied 10 March 2012

Yes, It comes under Income Tax and automatic as well as manual calculation of interest u/s 234A, 234B and 234C. For this you can jump on any of income tax software.

Anooj (Chartered Accountant) (2130 Points)
Replied 10 March 2012

Originally posted by : Raghuram :-)
	Indexation is available for long term capital assets.if sec 10(38) is applicable Ltcg is exempt from tax. If it is not exempt, then indexation can be claimed but CG is taxable @ 20%. If indexation is not availed then taxable @ 10%. This benefit can be exercised at the option of assessee.