How to Index Cost of Acquisition

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  1. How to calculate Indexed cost of flat in following situation?
    a) Purchased flat from Army Welfare Housing Organisation (AWHO) which, as welfare scheme for Defence employees, builds residential projects in major cities of India and sells .
    b) The actual cost of acquisition is Rs. 7,11,900/- in 1997-98. Paid through Demand Drafts and duly receipted by AWHO.
    c) The sale-deed was executed with sale consideration value as Rs. 3,62,323/- in 2000-01 for Stamp Duty purpose as cost of specific unit (presumably excluding the cost of common facilities).

    My question is which value I should take for indexation.
     
  2. nikhil9090

    nikhil9090 Member

    The central board of direct taxes will soon declare cose inflation index (CII) numbers for the current financial year. If you plan to sell your property, calculate the indexed cost of property, calculate the indexed cost of property acquisition using the new number to arrive at the actual capital gain and save on capital gains tax.
     
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