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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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