Capital gain index pdf

Cost inflation index also called capital gain index is used to calculate the indexed cost of acquisition for longterm capital gain tax. Cost inflation index for fy 201920 ay 202021 taxguru. Cost inflation index is a measure of inflation, used to calculate longterm capital gains from sale of capital assets. To understand capital gain index, first it is important to understand what is a capital gain and the crucial concepts that are associated with it. What are the year wise values of cost inflation index till fy 201920. Noteas per the below cost of inflation index cii, the cii rate for fy 201718 is 272 and for fy 200506, it is 117. If the capital asset is acquired by the assessee through any of the waysmodes specified us. In this case, the supreme court compared the decision in the case of anarkali sarabhai referred to above and held that in that case the preference shares were redeemed in entirety whereas in the present case it was partly redeemed by reduction of share capital.

Which is the base year for calculation of cost inflation index in capital gain. The indexation method of calculating your capital gain. Cost inflation index is used for calculating long term capital gain. Proceeds earned through such transactions can arise either through. Cost inflation index for ay 201920 with downloadable pdf. However, if you do not consider the indexed cost, then in plain the gain may be said as rs. Capital gains can be described as gains that have been generated through the sale of capital assets. Notified cost inflation index under section 48, explanation v as per notification no.

Change in the base year for capital gain indexation in budget 2017, the government proposed to change the base year to calculate the indexation benefit from 1981 to 2001. Indexation relief will only apply for the period of ownership of the asset up to 31 december 2002 for any disposals made on or after 1 january. How to get fair market value as in 2001 new base year for cii is 2001. Meaning of capital asset capital asset is defined to include. Cost inflation index cii is an index which finds its utility in the income tax act at the time of computation of long term capital gains to be disclosed in the. Every year, income tax department notifies cost inflation index. Cost inflation index chart table for fy 20182019 ay 2019. Cbdt notified the cost of inflation index fy 201920 ay 202021 for capital gain on 12th september 2019. Cost inflation index cii is used to calculate longterm. Further, the capital gains tax is asymmetric in that it immediately taxes gains, while capital losses do not immediately result in a tax benefit. Notified cost inflation index under section 48, explanation v as per. You can also download a pdf version of the inflation. You can use the indexation method to calculate your capital gain if.

Cost inflation index for longterm capital gains 201920. How to calculate indexed cost of acquisition in capital gain. Pdf cost inflation index cii in capital gain p k gupta. Capital gains is the profit that you make from selling an asset, which can be real estate, jewellery, stock, etc. The capital gains will be computed after deducting the indexed cost of acquisition from the sale value. Cost inflation index fy 201718 is 272 ay 201718 new cost of inflation index cii come into force.

In this post, we will discuss about cost inflation index for ay 201920 or fy 2018 19. New cost inflation index cii chart table for 20192020. Knowledge of cost inflation index is necessary for computing longterm capital gains. The entire process where the capital assets cost price is adjusted with the effect of inflation using the cost inflation index number is referred to as. In this post, we will discuss about cost inflation index for ay 201920 or fy 201819. Cost inflation index cii chart table for fy 20182019 ay 20192020. You may be aware that the base year was changed from the earlier fy 198182 to fy 200102. Capital gain index chart pdf cavalli marci in 2020 check out capital gain index chart pdf album or view capital gain index chart and also capital gain index. Because the capital gains tax is a tax in addition to those on wage and business income, the capital gains tax is an asymmetric tax on successful entrepreneurial ventures. In this part you can gain knowledge about the provisions relating to tax on long term capital gains. This number is important as it is used to arrive at the inflationadjusted purchasing price of assets and thereby longterm capital gains. In the case of transfer of a depreciable asset, capital gain is taken as shortterm capital gain, irrespective of period of holding. Here is the cost inflation index chart for fy 20192020 and ay 202021.