Hi,
Capital gains are taxable under the income tax of India. There are two types of capital gains that are long term capital gains and short term capital gains. When you purchase a property and sell it within the purchase of 3 years you will be taxed under short term capital gains and if you sell a house after 3 years of purchasing it will fall under short term capital gains. We need to consider different factors to get the Indexed cost of acquisition. The cost of acquisition is ascertained based on the Cost Inflation Index or CII for the year of transfer and CII for the year of sale, cost of acquisition.
I will provide the formula below so that you can easily calculate your indexed cost of acquisition.
Index acquisition cost calculation = Purchase price of the property x CII of the financial year in which property was sold / CII of purchase year of the propertyYou can use the formula to check the index cost of acquisition.
You can check CII chart by Income Tax Department by clicking on this link
I hope this was helpful.
How To Calculate Indexed Cost Of Acquisition?
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Property brought on 1996 and house constructed on 1998 how to calculate the indexed cost
RANDH
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2021-12-07T10:14:50+00:00 2021-12-07T10:14:51+00:00Comment
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