indexation

Section 55 | Income Tax Act, 1961 | Acquisition & Improvement Cost

Income Tax - Short Notes on Section 55 of Income tax act 1961. (Opting for benefit of Section 55 ) 1. Cost of acquisition of capital assets becoming property of the assessee before 01.04.1981/01.04.2001. Where the capital assets has become property of the assessee before 01.04.1981, then the cost of acquisition of such an asset will be the […]...

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Why returns of index funds vary from its index & Other similar funds

Income Tax - Index Mutual Funds invests in stocks resembling underlying indexes. For example, a Nifty 50 index fund invests in stocks in the same proportion of its underlying index. Here one may conclude that returns of all index funds underlying the same index should be the same....

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Residential property and Tax on capital gain

Income Tax - When investors make profits on sale of assets like land, shares and mutual fund units, it is termed as capital gains. The investor has to pay tax on the resulting gains that is commonly referred to as capital gains tax. The amount of money outflow from your pocket depends on how long you held the property. If a residential property is hel...

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Index Funds Sahi Hai

Income Tax - Nifty 50 is the most common, liquid and tracked index by all the traders/investors of the share market to determine the direction wherein the broader market is moving ahead. It is the flagship index on the National Stock Exchange (NSE) which consists 50 largest conglomerates of India based on the free float market capitalization of compan...

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Cost Inflation Index Table upto Financial Year 2020-21

Income Tax - Govt. has come out with index table called Cost Inflation Index whose base year was fixed as 1-4-1981. In Finance Bill 2017 the Govt. has taken a very bold step and has shifted the base year from 1981 to 2001 for the benefit of investors....

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Cost Inflation Indexed Cost Calculator

Income Tax - Calculate Long term capital gain on sale of capital Assets other then shares with the help of Indexation.- We have given below the Cost Inflation (CII) Index calculator which automatically calculates Indexed cost of your asset. In the calculator You just have to fill the Year of Sale, Year of Purchase , Cost of Purchase/Acquisition/Improv...

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Foreign Foreign companies or individuals, including FII can enjoy lower capital gain tax

Income Tax - According to a recent decision of the Mumbai bench of the Income Tax Apellate Tribunal, non-resident companies and individuals are entitled to a beneficial rate of tax of 10% on long-term capital gains arising from the sale of shares of listed entities. Earlier, non-resident assessees were taxed at the rate of 20%....

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Foreign companies can also claim benefit of lower Rate of Tax on Capital Gain from securities transaction

Income Tax - Foreign companies cannot be discriminated vis-a-vis Indian firms so far as capital gains tax on securities transaction is concerned, according to an order by the Authority for Advance Rulings (AAR). Giving its ruling in a case related to UK-based Fujitsu Services, AAR said the company should also be given an option of paying tax at [&hell...

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Sensex given vote of Support to Congress, Hit two upper circuits in one day

Income Tax - Markets have stopped trading for the day as the benchmarks hit another upper circuit Monday as soon as the trade resumed after 2 hour break. Investors are euphoric after the United Progressive Alliance emerged victorious in the 2009 general elections. Bombay Stock Exchange’s Sensex was locked at 14272.62 up 2099.21 points or 17.24 pe...

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Merger of RIL & RPL will be tax neutral for RPL Shareholders

Income Tax - The merger of Reliance Pertroleum (RPL) with Reliance Industries (RIL) is the latest in a long string of amalgamations and mergers that have taken place over time in the Reliance group. As per the arrangement announced by RIL, RPL shareholders of RPL will get one share of RIL for every 16 RPL shares held by […]...

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For Indexation of cost, Effective date is date of allotment of property

L. Vivekananda M/s. Vivek Hotels Vs ACIT (ITAT Bangalore) - For computing indexed cost of the asset, the date is to be reckoned from the date of allotment of the property to the assessee, and not from the date on which possession certificate was issued to the assessee....

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Indexed Long-Term Capital Loss from Sale of Government Securities allowable

Peerless General Finance & Investment Company Limited Vs DCIT (ITAT Kolkata) - Peerless General Finance & Investment Company Limited Vs DCIT (ITAT Kolkata) It is observed that the issue relating to the assessee’s claim for Long-Term Capital Loss arising from the sale of Government Securities by applying the Cost Inflation Index was disallowed by the Assessing Officer in ...

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Interest part of Cost of Property & eligible for indexation & deduction

Parwati Devi Totlani Vs ITO (ITAT Jaipur) - Interest paid  on the borrowing made for acquiring Capital Asset (House Property)  is part of the cost of acquisition and therefore eligible for indexation and deduction from the Sale Consideration  for computation of capital gains. ...

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In case of dual views, view adopted by A.O. is valid & cannot be called erroneous

CIT Vs A.R.Builders & Developers P Ltd, (Madras High Court) - The issue under consideration is that, when two views are possible and A.O. adopt one of the view and passed his order accordingly. But that view is not acceptable by PCIT, in such case can PCIT adopt its one of the other views and call the order of A.O. the erroneous?...

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Under Construction Property – Indexation as per year of payment

Lakshman M. Charanjiva Vs Income Tax Officer (ITAT Mumbai) - Lakshman M. Charanjiva Vs ITO (ITAT Mumbai) Indexation benefit against the cost of acquisition shall be available to the assessee on the basis of index of the year in which the payments were actually made by the assessee. The payment made up-to the date of agreement i.e. 18/10/2007 shall be indexed ...

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Cost Inflation Index for Financial Year 2020-21- CBDT Notifies

Notification No. 32/2020-Income Tax [S.O. 1879(E)] - (12/06/2020) - CBDT notifies Income Tax Cost Inflation Index for Financial Year 2020-21 or Assessment Year 2021-22 vide  Notification No. 32/2020-Income Tax dated 12th June 2020 at 301. Cost Inflation Index helps taxpayer calculation his Long Term Capital Gain on sale of Long Term Capital Assets. Also Read-Cost I...

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CBDT notifies Cost Inflation Index for Financial Year 2019-20

Notification No. 63/2019-Income Tax [S.O. 3266(E)] - (12/09/2019) - CBDT notifies Cost Inflation Index for Financial Year 2019-20 vide Notification No. 63/2019 dated 12th September, 2019. Cost Inflation Index for Financial Year 2019-20 at 289. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 63/2019- Income Tax New Delhi, ...

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CBDT notifies Cost Inflation indexes with Base Year as 2001-02

Notification No. 44/2017-Income Tax [S.O. 1790(E)] - (05/06/2017) - CBDT has vice Notification No. 44/2017 notified Cost Inflation indexes with Base Year as 2001-02 for the Financial Year 2001-02 to 2017-18 and same are applicable from Financial Year 2017-18....

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CBDT notifies Cost Inflation Index for Financial Year 2016-17

Notification No. 42/2016-Income Tax - (02/06/2016) - CBDT has notified Cost Inflation Index for Financial Year 2016-17 / Assessment Year 2017-18 at 1125 . Cost Inflation Index for Financial Year 2015-16 was 1081 so there is an increase of 44 in Cost Inflation Index . ...

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CBDT notifies Cost Inflation Index for Financial Year 2015-16

Notification No. 60/2015 - Income Tax - (24/07/2015) - Notification No. 60/2015 - Income Tax S.O. (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 in the...

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Recent Posts in "indexation"

Section 55 | Income Tax Act, 1961 | Acquisition & Improvement Cost

Short Notes on Section 55 of Income tax act 1961. (Opting for benefit of Section 55 ) 1. Cost of acquisition of capital assets becoming property of the assessee before 01.04.1981/01.04.2001. Where the capital assets has become property of the assessee before 01.04.1981, then the cost of acquisition of such an asset will be the […]...

Read More
Posted Under: Income Tax |

For Indexation of cost, Effective date is date of allotment of property

L. Vivekananda M/s. Vivek Hotels Vs ACIT (ITAT Bangalore)

For computing indexed cost of the asset, the date is to be reckoned from the date of allotment of the property to the assessee, and not from the date on which possession certificate was issued to the assessee....

Read More

Indexed Long-Term Capital Loss from Sale of Government Securities allowable

Peerless General Finance & Investment Company Limited Vs DCIT (ITAT Kolkata)

Peerless General Finance & Investment Company Limited Vs DCIT (ITAT Kolkata) It is observed that the issue relating to the assessee’s claim for Long-Term Capital Loss arising from the sale of Government Securities by applying the Cost Inflation Index was disallowed by the Assessing Officer in the assessment completed under section 1...

Read More

Why returns of index funds vary from its index & Other similar funds

Index Mutual Funds invests in stocks resembling underlying indexes. For example, a Nifty 50 index fund invests in stocks in the same proportion of its underlying index. Here one may conclude that returns of all index funds underlying the same index should be the same....

Read More
Posted Under: Income Tax |

Residential property and Tax on capital gain

When investors make profits on sale of assets like land, shares and mutual fund units, it is termed as capital gains. The investor has to pay tax on the resulting gains that is commonly referred to as capital gains tax. The amount of money outflow from your pocket depends on how long you held the property. If a residential property is hel...

Read More
Posted Under: Income Tax |

Index Funds Sahi Hai

Nifty 50 is the most common, liquid and tracked index by all the traders/investors of the share market to determine the direction wherein the broader market is moving ahead. It is the flagship index on the National Stock Exchange (NSE) which consists 50 largest conglomerates of India based on the free float market capitalization of compan...

Read More
Posted Under: Income Tax |

Cost Inflation Index Table upto Financial Year 2020-21

Govt. has come out with index table called Cost Inflation Index whose base year was fixed as 1-4-1981. In Finance Bill 2017 the Govt. has taken a very bold step and has shifted the base year from 1981 to 2001 for the benefit of investors....

Read More
Posted Under: Income Tax | ,

Cost Inflation Index | Meaning & Index from 1981-82 to 2020-21

Article discusses Meaning of Cost Inflation Index (CII) which is used for Computation of Long Term Capital Gain. Cost Inflation index are Notified by CBDT every year and till date CBDT has notified Cost Inflation Index for the Financial Year 1981-82 to Financial year 2020-21.  Cost Inflation index are used for computing indexed cost of [...

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Posted Under: Income Tax | ,

Cost Inflation Index for Financial Year 2020-21- CBDT Notifies

Notification No. 32/2020-Income Tax [S.O. 1879(E)] 12/06/2020

CBDT notifies Income Tax Cost Inflation Index for Financial Year 2020-21 or Assessment Year 2021-22 vide  Notification No. 32/2020-Income Tax dated 12th June 2020 at 301. Cost Inflation Index helps taxpayer calculation his Long Term Capital Gain on sale of Long Term Capital Assets. Also Read-Cost Inflation Index – Meaning & Index f...

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Indexation of Inherited Property

A big question arise in the mind of every professional that whether benefit of Indexation can be claimed on Inherited Property ; if yes then second half thought is whether it can be claimed from the year in which it is first held by the assessee or from the year in which it is occupied by the Previous Owner or predecessor. ...

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Posted Under: Income Tax | ,

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