How do i calculate the cost index inflation rate?
Tipsy
(Querist) 14 April 2013
This query is : Resolved
How Do I Calculate the cost index Inflation Rate?
My mother 83 years old , Flat purchased in the financial year 1982-83 17.8.1982 for Rs.1,07,000/- and is sold in year 2013-14 (11.04.13) for Rs. 40,00,000. what is capital gain and how much tax is to be paid?
1. Cost of Flat : Rs 1,07,000/-
2. Date ofPurchase : 17.8.1982 Financial Year 1982-83
3 date of sale is 11.04.2013 Financila Year 2013-14
ajay sethi
(Expert) 14 April 2013
your chartered accountant would be the right person to guide you on said issue
R.K Nanda
(Expert) 14 April 2013
contact ur CA.
Anirudh
(Expert) 14 April 2013
Dear Tipsy,
The sale has taken place in 2013-14. However, the cost inflation index for the year 2013-14 has not been announced so far. It will get announced somewhere in the month of September.
In the meanwhile, you can apply the 2012-13 index to have an idea about the approximate amount of capital gain. (Since the index will be higher than 852 for the year 2013-14, the capital gain will work out less than what is being worked hereunder using the 2012-13 index.)
Cost Inflation Index for the year 1982-83 = 109.
Therefore, the indexed cost of acquisition is as under:
Cost x index for 2012-13 / index for 1982-83.
=107000 x 852 / 109 = 836367
Capital Gain = Sale price - Indexed Cost of Acquisition.
= 4000000 - 836367 = 3163633.
Capital Gain as per your given facts works out to Rs. 31,63,633/- As already indicated this is based on the cost index for 2012-13. If you apply the cost index that would be announced for 2013-14, then the capital gain would work out the slightly less than the figure of Rs. 31,63,633.
Tipsy
(Querist) 15 April 2013
I would like to thank each and every one and Anirduh sir Thanks very much for your review and I truly appreciate your working
