taxation on sale of property

what is meant by base date for cost of acquisition

asked May 29 '11 at 06:07 by Lokesh Sharma 1111


Date of possession on the property has to be used in capital gain computation.

Below calculation has to be used to computation of income tax on sale of property.

Purchase Year = A
Purchase Cost = P
Cost Inflation Index (CII) for purchase year = X

Sale Year = B
Selling price = Q
CII for sale year = Y

Indexed Purchase price = P x (Y/X) = R
Long term capital gain = Q - R = S
Income tax on capital gain = S x 20%

answered May 30 '11 at 03:06 by pankaj 5.2k320

link

Know someone who can answer? Share a link to this question via email, twitter , or facebook
.

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text](http://url.com/ "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported

Tags:

×777
×339
×326
×140

Asked: May 29 '11 at 06:07

Seen: 1,022 times

Last updated: May 30 '11 at 03:06