Capital gains- Cost Inflation index for income tax purpose

Some of my readers are asking the question where to find the cost inflation index for income tax purpose. They can see these tables in income tax rules book. Also for their benefit , Just I am giving below the table:

1981-82 100 1982-83 109
1983-84 116 1984-85 125
1985-86 133 1986-87 140
1987-88 150 1988-89 161
1989-90 172 1990-91 182
1991-92 199 1992-93 223
1993-94 244 1994-95 259
1995-96 281 1996-97 305
1997-98 331 1998-99 351
1999-2000 389 2000-01 406
2001-02 426 2002-03 447
2003-04 463 2004-05 480
2005-06 497 2006-07 519
2007-08 551 2008-09 582
2009-10 632 2010-11 711

14 thoughts on “Capital gains- Cost Inflation index for income tax purpose

  1. I booked a flat in 2007 & received the allotment letter in 2008. It is under construction since then. Payment paid to the builder in instalments. 5% is still left and expected tobe completed by May 2013.
    If I sell the property, shall I elibible for long term czpital gain. How to calculate the presemt cost through CII,if the paymentx are made 15% of property value every year and 30% in last year.

    1. Three years should elapse from the completion date of the flat for avaiiling capital gain benefit. You should obtain the completion certificate from builder. What amount you paid periodically can be inflated according to index avaiilable for property provided by income tax dept

  2. I purchased a flat in oct 2003 for 19.5 lacs and sold in April 2012 for 18 lacs.

    How much loss on capital gain/loss, i can claim.

    Also I purchased a flat in Dec 2011 for 1.09 cr and sold it for 1.35 in april 2012. Difference is eligible for Short term capital gain.

    Can I set off the loss from first transaction with the second one.

    1. A capital loss for a particular year can be carried forward only if the income tax return for that year is filed by the due date.Long term capital loss can be set off only against a long term capital gain.
      You can easily calculate capital loss by knowing difference between % of index for 2012-13 and % index 2003-04 and multiplying your original purchase cost . You will get adjusted purchase cost. You can add any capital cost incurrred for improving the flat etc and brokerage charges in your purchase cost. From the revised enhanced cost of purchase, deduct your sale price. The diffference will be capital loss if your purchase price is highter thn sale price. You can offset this loss by long term capital gain only.

  3. Dear Venkata Ramani
    In my message dated December 09, 2011 seeking certain guidance on indexation for capital gains tax please read as ‘For the transfer I have utilised the services of an Agent and I have paid a fee of….’ Also please read that the one percent of the sale consideration has been paid to the society. Thanks.

        1. Dear Mr. Venkata Ramani
          Once again I am seeking a guidance from you regarding indextion.I have sold my residential flat in India during September, 2011. The flat was pucrchased by me during 1984-85. The purchase price was paid by me in four instalments. Few payments were made during 1981-82 and 1982-83. While arriving at the indexed cost of the purchase consideration I have taken into account the specific dates of payment of instalments and calculated the indexed price accordingly. In this method I get an enhanced purchase price. Please guide me whether this is in order.I once again thank you for all the guidance you have given me in the past. S.Ramachandran.

  4. Dear Venkata Ramani
    I am non-resident residing in USA. Recently I have sold my residential apartment(during September 2011) in India. For the transfer I utilised the services of an Agent and I have a fee of Rupees one lakh. I had purchased the apartment from our Bank employees’ cooperative society and as per the society rules I have paid a sum of Rupees sixty thousand being one percent of the sales consideration. Please guide me whether I can deduct both the above two amounts from the Sale consideration while arriving at the indexed cost of acquisition and sale price for the purpose of Capital gains tax…Thanks.

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