Cost Inflation Index (CII) for Years before 1981

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  1. hariharan_19

    hariharan_19 New Member

    In Aug 1976, I bought a flat in Dombivli (Maharashtra) for INR 30,000.
    I now (Jan 2015) contemplate to sell the flat for INR 25,00,000.

    Since, CII is not available for the year 1976, am unable to verify the Capital Gain, if at all any applicable.

    May I request you to please guide me as to whether CG is applicable in the above case. And if yes, what would be the likely CG and Tax payable.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    For properties purchased before 1981, the Fair Market Value as on 1-4-81 would be computed and the CII Index applied accordingly.
     
  3. Prince_Jain

    Prince_Jain New Member

    As the asset is purchased before F.Y. 1982-82 and CII is available from Year 1981-82 only, therefore to compute capital gains on transfer of properties purchased before 1981-82, fair market value as on 1st April, 1981 shall be considered for indexation.

    e.g. Fair market Value as on 1st April, 1981 X CII for the year in which the asset is transferred/ CII for the year in which the asset was first held be the assessee or 1981-82, whichever is later.
     
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