Expenses Disallowed U/s Section-48 for Computing Capital Gain

Any amount paid on account of Security Transaction Tax shall not be allowed to be deducted U/s 48.

For the above purposes :

A.         ‘Indexed, Cost of acquisition’ means an amount which bears to the cost of acquisition the same proportion as Cost Inflation Index for the first year in which asset was held by the asses see or for the year beginning on the 1St day of April 1981, whichever is later.

B.         “Indexed cost of any improvement” means the amount which bears the cost of improvement the same proportion as cost Inflation Index fr the year in which the asset is sold bears to the cost Inflation Index for the year in which improvement to the asset took place.

C.         “Cost Inflation Index”, in relation to a previous year, means such Index as the Central government may, having regard to seventy five per cent of average rise in the consumer Price Index for urban non-manual employees for the immediately preceding previous year to such previous year, by notification in the Official Gazette, specify, in this behalf.

Vide notifications issued u/s 48 the Central Govt. has notified the following Cost Inflation Index (C.I.I.)

Sr. No.

Financial Year

Cost Inflation Index (C.I.I.)

1         
2
        
3
        
4
        
5
        
6
        
7
        
8
        
9
        
10       

1
1       
1
2       
1
3       
1
4       
1
5       
1
6       
1
7       
1
8       
19       
2
0       
2
1       
2
2

23

24

25

26

27

28

29

30

31

32

33

1981—82      

1982—83      

1983—84      

1984—85      

1985—86      

1986—87      

1987—88      

1988—89      

1989—90      

1990—91

1991—92

1992—93

1993—94

1994—95

1995—96

1996—97

1997—98

1998—99

1999—2000

2000—01

2001—02

2002—03

2003—04

2004—05

2005—06

2006—07

2007—08

2008—09

2009—10

2010—l1

201 1—20

2012—13

2013—14

100

109

116

125

133

140

150

161

172

182

199

223

244

259

281

305

331

351

389

406

426

447

463

480

497

519

551

582

632

711

785

852

939

 

 

INDEXING AT A GLANCE U/S 48 (iii)

Situation

Indexing

1A.

Long term capital assets acquired before 1-4-81 under gift, will, partition H.U.F. inheritance i.e. u/s 49(1)

Actual cost or FMV on 1-4-81 (whichever is
more) x C.I.1. of the year of sale/C.1.I. of 1981-
82 i.e. 100

1B.

Cost of improvement incurred after 1-4-81 on above mentioned assets.

Cost of improvement  X  C.I.I. of the year of sale

__________________________________________________

C.I.I. of the year of improvement.

2.

Long term capital assets acquired on or after 1-4-1981 (not under any of the modes mentioned in 4 above)
Cost of improvement incurred after
1-4-1981 =

Actual cost x C.I.I. of the year of sale

________________________________________

C.I.1. of the year of acquistion

Cost of improvement x C.I.I. of the year of sale

________________________________________________

C.I.I. of the year of improvement

3.

Long term capital asset acquired by present seller under section 49(1) after 1-4-81 but was acquired by previous owner before 1-4-81.

Actual cost or FMV on 1-4-81 (whichever is more) x CII. of the year of sale/C.I.I. of the year in which present seller became its owner

 

C.I.I. = Cost Inflation Index.
 
 

 
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Capital Gain is Deemed to be the Income of the Previous Year
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Distribution of Assets by A Company in Liquidation for Computing Capital Gain
Capital Gain on Purchase by A Company of its Own Shares or Other  Securities [Section 46A]
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Method of Computing Capital Gain [Section 48]
Expenses Disallowed u/s Section 48 for Computing Capital Gain
Cases in which the Indexation of Cost is not to be done while Calculating long Term Capital Gain
 Computation of Capital Gain in Case of Non-Residents [Sec. 48 Proviso 1 ]
Determination of Cost of Acquisition for Computing Capital Gain.
Taxation of Gain on ‘Slump Sale’ for Computing Capital Gain

Special Provision for full Value of Consideration in certain cases (Section 50C] for Computing Capital Gain
Treatment of Advance Money Received and Forfeited (Section-51] for Computing Capital Gain
Cost of Acquisition of Goodwill [Section-55(2)(a)] for Computing Capital Gain
Cost of Acquisition of Shares [Section 55 (2) (v)] for Computing   Capital Gain
Capital Gains Exempted u/s 10
Capital Gains—Exempted u/s 54
 Capital Gain on Transfer of Self-Cultivated Agricultural Land in Urban   Areas [ Section 54 B]
Capital Gains on Compulsory Acquisition Of Land And Buildings [Section 54D]
 Capital Gain on Transfer of any Long Term Capital Asset [Section-54EC]
Exemption of Capital Gain on Transfer Of Long-Term Capital Assets in case of Investment In Residential House [Section 54F]
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Reference to Valuation Officer [Section 55] towards Capital Gain
 TREATMENT OF CAPITAL LOSS [Section 74]
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