CBDT notifies ‘317’ as Cost inflation index for Financial Year 2021-22 / Assessment Year 2022-23 vide Notification No. 73/2021-Income Tax | Dated: 15th June, 2021.
MINISTRY OF FINANCE
(Department Of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
S.O. 2336(E).— In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, published in the Gazette of India, Extraordinary, vide number S.O. 1790(E), dated the 5th June, 2017, namely:‑
2. In the said notification, in the Table, after serial number 20, the following serial number and entries relating thereto, shall be inserted, namely:-
|Sl. No.||Financial Year||Cost Inflation Index|
3. This notification shall come into force with effect from 1st day of April, 2022 and shall accordingly apply to the Assessment Year 2022-2023 and subsequent years.
[Notification No. 73/2021/F.No.370142/10/2021 -TPL]
KAMLESH CHANDRA VARSHNEY, Jt. Secy. (Tax Policy and Legislation)
Note:- The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O. 1790(E), dated the 5th June, 2017 and was last amended vide S.O. 1879 (E) dated 12th June, 2020.
Also Read:Cost Inflation Index | Meaning & Index from 1981-82 to 2021-22
WOULD LIKE TO KNOW ABOUT INDEXING METHOD FOR LONG TERM CAPITAL GAIN CALCULATION PROPERTY YEAR 1938 TO BE SOLD IN 2021
Inspite of govt notify every year CII (CAPITAL INFLATION INDEXATION) ITS NOT ACCEPTED BY TAX AUTHORITIES AND ADD ON ADDITIONAL INCOME AND ISSUES NOTICES THAT ASSESSEE’S INCOME ESCAPED TO DECLARE IN THE RETURNS AND REOPENING THE ASSESSESSMENTS INSPITE OF ALL THE FACTS THAT ASSESSEE DECLARED THE INCOME CORRECTLY CONSIDERING CII- CAPITAL INDEXATION COST OF THE PROPERTY SOLD AND CLAIM THE TAX EXEMPTION.
Indexation is done by applying CII – cost inflation index. This increases your cost base ie purchase price and lowers your gains. Your purchase price is adjusted for the impact of inflation.
Assessing officers adopting a hyper technical view that such that construction agreement not registered with subregistrar under karnataka stamp act and registration act and assessee not eligible for LTCG exemptions under sec 54 of the income tax act.
Where this was not followed by anyone who so ever booked apartments and taken pocession in the early years 80s, 90s and 2000 there after even to till date.
No where mentioned in income tax act nor in the stamp act and registration act that property should be registered for full value in the case of apartments when it is originally booked and bought from the builders.
for proper application ‘of this section it has to be seen whether in the instant case is it a purchase or a construction?
It has been clarified by the CBDT in circular No.672 dated 16.12.1993 in which it has been made clear that the earlier circular No. 471 dated 15.10.1986 in which it was stated that acquisition of flat through allotment by DDA has to be treated as a construction of flat would apply to co-operative societies- and other institutions. The builder would fall in the category of other institutions as held by Mumbai Bench of Tribunal in the case Smt. Sunder Kaur Sujan Singh Gadh (supra) and therefore booking of the flat with the builder has to be treated as construction of flat by the appellant.
Over 5% rise from FY 20-21 CII…Reflecting the high Inflation rise in the year gone by due to various factors including lockdown