Capital Gains Income Tax-Cost Inflation Index from 1981 to 2015-16
The time has come again to get ready for filing your Income Tax returns. If you sold any property which is to be taxed under Long Term Capital Gains, you must be looking for Cost Inflation Index to compute the LTCG.
Cost Inflation Index is applicable from the year 1981-1982.
How Cost Inflation Index works?
Cost Inflation Index discounts the increase in sale consideration while computing your long term capital gains. This is a prescribed method by government to allow the increase in cost of living.
How Long Term Capital Gain is computed after considering the Cost Inflation Index?
Long term capital gain or LTCG is computed in following manner by considering the cost inflation index.
Sale Consideration: Rs. 1000
Purchase cost (After indexation benefit): 900
Long Term Capital Gain : 100
Suppose if the original purchase price was 500 and land was purchased in 1995, than you have to arrive at the cost price by using following formula:
(Cost of Land/Index price during the year of purchase)*Cost inflation index in the year of sale
Cost Inflation Index for the years 1981, 1982, 1983, 1984, 1985, 1986, 1987, 1988, 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015
|FINANCIALYEAR||COST INFLATION INDEX|
Cost Inflation Index Chart for the years from 1981 to 2015
Thank you very much Rahul.
This was a much needed information. This table becomes a handy tool while filing the income tax returns or preparing the income tax returns.
I have a small Doubt in Capital Gain Taxations:
I Purchased a property in April 2005 and Sold in March 2015
Now While selling a case has been filed be the Seller's Son.
I am ready to Pay him say 5 Lakh but he is not ready to take and he wants 10 Lakh
This will be my Cost which is 5 Lakh fixec and after the decision of Case.
Can i claim the Cost of 5 Lakh for Calculation of LTCG
Whether 88 Rebate of Rs. 2,000 is Applicable for Computation of Short term capital gain?
I.e. I do not have any income other that STCG on sale of Property of Rs. 4,60,000
I sold a house that I bought a four years ago and made capital gains (FY14-15). I am a senior citizen and even with the gains my total income for FY14-15 will be below the maximum amount which will not be chargeable to income tax (i.e. Rs.2,50,000) Am I still required to pay tax on the above capital gains?