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 Batra 5.2k320


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Asked: May 29 '11 at 06:07

Seen: 1,397 times

Last updated: May 30 '11 at 03:06