Indexed cost of acquisition of shares
Indexed Cost of Acquisition = Actual Purchase Price * (Index in year of Sale / Index in Year of Purchase) If the property is purchased before 2001, then you need to get the Fair market value of the property in 2001 and the use that for Indexed cost. Indexed purchase price of the shares = 36250 x 1081 / 1024 = 38268 approximately. So Sandeep’s long-term capital gains are based on the following numbers: Full sales value – Rs. 48,000; Brokerage at 0.5% - Rs. 240; Indexed purchase price – Rs. 38,268; Indexed improvement cost – Rs. 0 So, indexed cost of acquisition would be 55,10,563 [25,00,000 * (939/426)]. In the same way, adjust additional construction cost against inflation. CII for the year in which the new floor was added is 497. So, the indexed cost for this will be 18,89,336 [10,00,000 * (939/497)]. Cost Of Acquisition: A business sales term referring to the expense required to attain a customer or a sale. In setting a marketing and sales strategy, a company must decide what the maximum cost Assuming that the highest listed price of the shares as on 31 January 2018 is ₹ 500, LTCG would be ₹ 1.40 lakh [ ( ₹ 850 – ₹ 500) x 400]. Assuming this is the only sale of listed shares during FY2018-19 and that surcharge is not applicable to you, Cost of acquisition is historical, the concept of indexed cost allows the taxpayer to factor in the impact of inflation on cost. Consequently, a lower amount of capital gains gets to be taxed than if historical cost had been considered in the computations.
To deal such cases, section 49(1) of the act has given a definition for cost of acquisition of a capital asset acquired without paying any consideration for the same. For computing the capital gains, again the cost of acquisition has to be indexed according to explanation (iii) to section 48 of the act.
The fair market value of shares which are unlisted on 31 January 2018 but listed on date of transfer shall be indexed cost of acquisition. This will also apply for unlisted shares which are substituted in tax neutral transfers (like amalgamation, demerger, gift, succession, etc) for shares which are listed on date of transfer. Share Tweet. Email. Print. Select your email service Close. Indexed Cost of Acquisition = Actual Cost of Acquisition * Cost Inflation Index of year of Sale Cost Inflation Index of year of Purchase. Therefore for an asset which was acquired in the year 2005-06 for Rs. 100 and sold in the year 2013-14 for Rs 200, the Indexed Cost of e. the conversion of one kind of shares of the company into another kind. Cost of acquisition of the share or stock is as calculated from the cost of acquisition of the shares or stock from which it is derived. 11. The cost of acquisition of rights shares is the amount which is paid by the subscriber to get them. Cost of Acquisition – Cost of acquisition of an asset is the sum total of amount spent for acquiring the asset. Where the asset was purchased, the cost of acquisition is the price paid. Any expenditure incurred in connection with such purchase, exchange or other transaction eg. brokerage paid, registration charges and legal expenses etc To deal such cases, section 49(1) of the act has given a definition for cost of acquisition of a capital asset acquired without paying any consideration for the same. For computing the capital gains, again the cost of acquisition has to be indexed according to explanation (iii) to section 48 of the act.
13 Sep 2019 What is the CII or Cost of Inflation Index FY 2019-20 AY 2020-21? on long-term capital gains—real estate, unlisted shares, gold and bond funds. Take an example of how the indexed cost of acquisition will be calculated
Did you sell any immovable property, shares, mutual funds or any other (2) The indexed cost of acquisition and indexed cost of any improvement thereto. 13 Sep 2019 What is the CII or Cost of Inflation Index FY 2019-20 AY 2020-21? on long-term capital gains—real estate, unlisted shares, gold and bond funds. Take an example of how the indexed cost of acquisition will be calculated
3 Feb 2017 old rule: If the asset was acquired after 01-04-1981, the purchase price has to be indexed with cost inflation index computed with a base as 100
So, indexed cost of acquisition would be 55,10,563 [25,00,000 * (939/426)]. In the same way, adjust additional construction cost against inflation. CII for the year in which the new floor was added is 497. So, the indexed cost for this will be 18,89,336 [10,00,000 * (939/497)]. Cost Of Acquisition: A business sales term referring to the expense required to attain a customer or a sale. In setting a marketing and sales strategy, a company must decide what the maximum cost Assuming that the highest listed price of the shares as on 31 January 2018 is ₹ 500, LTCG would be ₹ 1.40 lakh [ ( ₹ 850 – ₹ 500) x 400]. Assuming this is the only sale of listed shares during FY2018-19 and that surcharge is not applicable to you, Cost of acquisition is historical, the concept of indexed cost allows the taxpayer to factor in the impact of inflation on cost. Consequently, a lower amount of capital gains gets to be taxed than if historical cost had been considered in the computations.
6 May 2009 Some examples are Real Estate , Shares , Mutual Funds , Gold and Debt Funds. Capital Gain = Sell Price – Indexed Purchase Price i.e. (Capital Gain = Sale Price MINUS Indexed Cost of Acquisition, Say Rs. 10 Lakhs).
24 Sep 2018 the sale consideration received by him and the cost of acquisition and the cost of acquisition of such shares (or the inflation indexed cost, 29 Oct 2006 My grandfather had purchased some shares ten years ago. Explanation 'iii' to Sec 48, defines 'indexed cost of acquisition to mean an 3 Feb 2017 old rule: If the asset was acquired after 01-04-1981, the purchase price has to be indexed with cost inflation index computed with a base as 100 6 May 2009 Some examples are Real Estate , Shares , Mutual Funds , Gold and Debt Funds. Capital Gain = Sell Price – Indexed Purchase Price i.e. (Capital Gain = Sale Price MINUS Indexed Cost of Acquisition, Say Rs. 10 Lakhs). 3 Aug 2015 This is now multiplied by the cost of acquisition (2,00,000 x 1.573) to arrive at the indexed cost of acquisition (Rs 3,14,740). Capital gains would 5 Feb 2018 in the case of equity shares acquired after 1 October 2004, STT is indexation of the cost of acquisition would not be available for computing.
Additionally, securities held by FII (Foreign Institutional Investor) according to SEBI Regulations are capital Less: Indexed Cost of Acquisition (ICOA), ( 154872). Cost Inflation Index values to Financial Year 2016-17 from Financial Year 1981- 1982 along with Capital Gain Calculator. For long-term capital gains, indexed cost of acquisition and indexed cost of improvement is Share. 0. Shares Any securities held by a FII which has invested in such securities in accordance Cost of acquisition × Cost inflation index of the year of transfer of capital asset When such shares or securities are sold by the employee, the employee will be liable to capital gains tax on the sale value less cost of acquisition / indexed cost 24 Sep 2018 the sale consideration received by him and the cost of acquisition and the cost of acquisition of such shares (or the inflation indexed cost, 29 Oct 2006 My grandfather had purchased some shares ten years ago. Explanation 'iii' to Sec 48, defines 'indexed cost of acquisition to mean an 3 Feb 2017 old rule: If the asset was acquired after 01-04-1981, the purchase price has to be indexed with cost inflation index computed with a base as 100