Cost Inflation Index – Capital Gain
The first payment was Rs Such minimum support prices are fixed at incentive level, so as to induce the farmers to make capital investment for the improvement of their farm and to motivate them to adopt improved crop production technologies to step up their production and thereby their net income.
Prices in India
Weighted averages of elementary aggregate indices e. Weight averages of these in turn provide sub-indices at a higher, more aggregated level, e. In the case of such products like newspapers in some countries and postal services, which have nationally uniform prices. An example might be an elementary aggregate for sliced bread sold in supermarkets in the Northern region.
Most elementary aggregate indices are necessarily 'unweighted' averages for the sample of products within the sampled outlets. However, in cases where it is possible to select the sample of outlets from which prices are collected so as to reflect the shares of sales to consumers of the different outlet types covered, self-weighted elementary aggregate indices may be computed.
Similarly, if the market shares of the different types of product represented by product types are known, even only approximately, the number of observed products to be priced for each of them can be made proportional to those shares. The outlet and regional dimensions noted above mean that the estimation of weights involves a lot more than just the breakdown of expenditure by types of goods and services, and the number of separately weighted indices composing the overall index depends upon two factors:.
How the weights are calculated, and in how much detail, depends upon the availability of information and upon the scope of the index. In the UK the retail price index RPI does not relate to the whole of consumption, for the reference population is all private households with the exception of a pensioner households that derive at least three-quarters of their total income from state pensions and benefits and b "high income households" whose total household income lies within the top four per cent of all households.
The result is that it is difficult to use data sources relating to total consumption by all population groups. For products whose price movements can differ between regions and between different types of outlet:. The situation in most countries comes somewhere between these two extremes. The point is to make the best use of whatever data are available.
No firm rules can be suggested on this issue for the simple reason that the available statistical sources differ between countries. However, all countries conduct periodical household-expenditure surveys and all produce breakdowns of consumption expenditure in their national accounts. The expenditure classifications used there may however be different. Even with the necessary adjustments, the national-account estimates and household-expenditure surveys usually diverge. The statistical sources required for regional and outlet-type breakdowns are usually weak.
Only a large-sample Household Expenditure survey can provide a regional breakdown. Regional population data are sometimes used for this purpose, but need adjustment to allow for regional differences in living standards and consumption patterns. Statistics of retail sales and market research reports can provide information for estimating outlet-type breakdowns, but the classifications they use rarely correspond to COICOP categories.
The increasingly widespread use of bar codes, scanners in shops has meant that detailed cash register printed receipts are provided by shops for an increasing share of retail purchases.
This development makes possible improved Household Expenditure surveys, as Statistics Iceland has demonstrated. Survey respondents keeping a diary of their purchases need to record only the total of purchases when itemised receipts were given to them and keep these receipts in a special pocket in the diary. These receipts provide not only a detailed breakdown of purchases but also the name of the outlet. Thus response burden is markedly reduced, accuracy is increased, product description is more specific and point of purchase data are obtained, facilitating the estimation of outlet-type weights.
There are only two general principles for the estimation of weights: Ideally, in computing an index, the weights would represent current annual expenditure patterns. In practice they necessarily reflect past using the most recent data available or, if they are not of high quality, some average of the data for more than one previous year.
Some countries have used a three-year average in recognition of the fact that household survey estimates are of poor quality. In some cases some of the data sources used may not be available annually, in which case some of the weights for lower level aggregates within higher level aggregates are based on older data than the higher level weights.
Infrequent reweighing saves costs for the national statistical office but delays the introduction into the index of new types of expenditure. For example, subscriptions for Internet service entered index compilation with a considerable time lag in some countries, and account could be taken of digital camera prices between re-weightings only by including some digital cameras in the same elementary aggregate as film cameras.
The way in which owner-occupied dwellings should be dealt with in a consumer price index has been, and remains, a subject of heated controversy in many countries. Various s have been considered, each with their advantages and disadvantages.
Leaving aside the quality of public services, the environment, crime and so forth, and regarding the standard of living as a function of the level and composition of individuals' consumption, this standard depends upon the amount and range of goods and services they consume. These include the service provided by rented accommodation, which can readily be priced, and the similar services yielded by a flat or house owned by the consumer who occupies it.
Its cost to a consumer is, according to the economic way of thinking, an "opportunity cost", namely what he or she sacrifices by living in it. This cost, according to many economists, is what should form a component of a consumer price index. Opportunity cost can be looked at in two ways, since there are two alternatives to continuing to live in an owner-occupied dwelling. One — supposing that it is one year's cost that is to be considered — is to sell it, earn interest on the owner's capital thus released, and buy it back a year later, making an allowance for its physical depreciation.
This can be called the "alternative cost" approach. The other, the "rental equivalent" approach, is to let it to someone else for the year, in which case the cost is the rent that could be obtained for it. There are, of course, practical problems in implementing either of these economists' approaches. Thus, with the alternative cost approach, if house prices are rising fast the cost can be negative and then become sharply positive once house prices start to fall, so such an index would be very volatile.
On the other hand, with the rental equivalent approach, there may be difficulty in estimating the movement of rental values of types of property which are not actually rented. If one or other of these measures of the consumption of the services of owner-occupied dwellings is included in consumption, then it must be included in income too, for income equals consumption plus saving. This means that if the movement of incomes is to be compared with the movement of the consumer price index, incomes must be expressed as money income plus this imaginary consumption value.
That is logical, but it may not be what users of the index want. Although the argument has been expressed in connection with owner-occupied dwellings, the logic applies equally to all durable consumer goods and services.
Furniture, carpets and domestic appliances are not used up soon after purchase in the way that food is. Like dwellings, they yield a consumption service that can continue for years. Furthermore, since strict logic is to be adhered to, there are durable services as well that ought to be treated in the same way; the service consumers derive from appendectomies or crowned teeth continue for a long time. Since estimating values for these components of consumption has not been tackled, the economic theorists are torn between their desire for intellectual consistency and their recognition that inclusion of the opportunity cost of the use of durables is impracticable.
Another approach is to concentrate on spending. This turns out to be quite complicated, conceptually as well as in practice.
I invested these 5 lakhs rs to another property. March 31, 4: April 21, Where is it specified that agricultural lands are exempted from Capital Gains Tax and is this a certainty?? April 22, 2: Transfer of Capital Assets only results in Capital Gain.
May 3, 4: But Sir, Agricultural land situated within the specified limits 8 km. May 4, 3: Dear Friend, You are right. And Such Municipality or cantonment board must have have a population of or more according to the latest census.
April 18, 1: What we have given in the Chart are Financial Years. Financial Year means Assessment Year CII for the Financial year is June 6, 5: June 6, 7: CII for has not been declared yet.. CII for the year is June 5, April 25, 5: But Sir, Agricultural lands situated within the specified limits 8 km.
May 7, 7: Dear Sir, WE have an agricultural property which is situated exactly at 8 kms distance from muncipal corporation population almost We are now planning to sell the property. Could u please specify if the sale proceeds so obtained would be taxable or not. May 8, 2: If your property is situated at exactly at 8kms distance then you can claim it as an agricultural Property. May 22, 5: April 26, Deal Friend, My query is: April 30, 2: Short term capital gains Without indexation except shares will be taxed at usual slab rates in case of an individual.
April 27, 4: I purchased a residential house in the year for Rs. In May all five of us jointly sold the house and realised a consolidasted capital gains of Rs.
Can this capital gains can be shown 30 lacs each to each of the five persons. And If all of us invest individually Rs. Kindly reply thanking you. June 4, 2: May 2, 9: May 10, May 19, 6: May 29, 1: I purchased a house in Ahmedabad in for Rs And sold it at Rs 15 lacs in May Do I have to pay any capital gain tax on this. May 30, For your Second Question, the CII for FY has not yet been declared by the Government as you will be paying tax on this transaction next year only.
Indexed Cost of Acquisition: June 7, June 10, 1: June 17, May 29, Can you please let me know where to lookup the cost of inflation index for manufactured automotive parts in india. June 2, 3: I bought a flat in march 05 for 46 Lakhs inclusive of stamp duty reg. So dis will b the amount u would have to deposit in RCE bonds to avoid payment of capital gain tax which will be in for a lock in period of 3 years. June 9, 9: June 10, 2: June 9, 6: Please correct me if wrong.
I heard the indexation for the financial year is Infact I also want to know if this is correct. June 11, 6: Does Section 54EC apply to former citizens of India?
The situation is that the person is no longer a citizen of India, but owns residential property to sell in India. Also, it seems the seller cannot own any other property — This person does not own any property in India. Is that on the sale value or the net Capital Gains? June 13, I have sold shares on 1st April I believe CII applicable to Capital gain arising out of this this sale is June 17, 2: I bought an apartment in Dec for around 56 lacs.
Not based on prices when I got the possesion. June 25, The amount was paid in installments between and as shown below: If I sell the house now, what will be the indexed cost? I am planning to build an additional floor in the house in which I live. May 24, 7: July 14, 6: July 18, 5: Yes no doubt indexation benefits will be applicable in case of long term capital gain and not for short term capital gain.
For long term capital gain the period of holding must exceed 3 years but in case of share period of holding must exceed 12 months only. Therefore conclusion is that if your assets is share and you are selling it after 12 months then you will get indexation benefit and in case of other assets you will get indexation benefit only selling after 3 years. July 26, 2: July 26, 6: Madam, As per my knowledge, shares bought by STT paid.
Which is completely Income Tax free. Therefore, no need of indexation for LTCG in shares. August 3, 1: If not what will be the tax I have to pay if my investment in is Rs. Thanks in advance Durai. August 5, 3: I own a flat since I purchased another flat in which was under construction. I had taken a loan of 30 lac for purchase of 2nd flat. The 2nd flat is going to be completed and I will take possession in a months time. Can I sell my flat puchased in and repay Rs 30 lac home loan and claim exemption from Capital gains tax for the said amount.
August 17, 7: August 13, 8: In regards to a inherited property, can you please explain from which date the property gain tax will be applied from?
My gradfather passed away in August 14, 3: When an asset is acquired by gift, will, Succession , inheritance or the asset is acquired at the time of partition of family […. Here the Previous Owner is your Grand Father, so the date of acquisition of Land will be the year But for indexation purpose you must estimate the fair market value of the Land as on 1st April, August 18, 8: My queries are as below:.
This has been purchased by taking loan from LIC. Can we take tax relief on the sale proceed as per section 54 or 54F on capital gains. Total Sale Amount Say Rs. Here my question is what will be my Capital gains part: Is there any other component I can add on? As I have already purchased another flat with higher amount say Rs.
As the previous flat was in the name of my wife only what amount we can adjust towards the capital gain amount against the cost of the newly purchaed flat and under which section. Also cost of the newly purchaed flat would be amount as per deed of conveyance, registration charges and mutation charges or any other I can include. By when we need to complete the sale process for adjusting the capital gains part as that has been purchsed during the previous financial year For adjusting the capital gains do we need to repay loan principal or only the purchasing of new flat will suffice.
What documents would be required to subit to get this tax relief for both the old flat and new flat? August 22, 2: August 24, I purchased a flat in at 5 lacs and sold same in at 22 lacs against a home loan. Can i show nil capital gain tax adjusting the capital gain against my earlier purchase.
If not, can I adjust my loan outgo against the capital gain. September 1, In your case you bought another flat on which is 2 year before the current sale, hence you do not fall under the said clause for saving capital gain tax. However still you can make investment for atleast These payments can be settled with any head of your income every year. September 2, September 10, 9: And if you sale in April , then FY and shall be considered.
September 5, Sir I had bought a house in Apr Rs 13lakhs. Now, I want to sell it on 08 Oct for Rs 24Lakhs. And also the procedure of informing IT department about utilisation of this amount. Hi, You need to consider CII for year and Based on this consideration there is -ve capital gain in this sale. September 22, 5: The fair value of your property as per cost indexation is September 30, 8: September 13, Sir, My Grand father bought a house in Apr Rs 10, Now, I want to sell it on Oct for Rs 14 Crors.
What will be the capital gain amount..? September 15, September 16, 6: You have the option to consider fair market value or actual cost as the cost of acquisition I would suggest take higher of the 2 amounts as it would lower your tax burden. Then use this formula: Subtract it from your net sale consideration and you would get your capital gain. October 9, October 1, October 2, My Mother plans to sell her house in november for 86 lacs which was purchased for 7 lacs in Oct When offsetting the long term capital gains on sale of the house against purchase of the apartment, do we have to consider the registration value of the apartment 30 lacs or the actual purchase price 68 lacs?
November 2, Sir, when equity shares purchased during the the year and sold in can have the benifit of indexation,why not debentures purchased and sold during the respective periods?? December 10, 6: November 2, 7: Kindly inform the amount of capital gain tax with calculations and amount for which i have to purchase tax saving bonds. November 18, 6: November 23, Capital gain will be as follows Sale Consideration Less: December 7, 5: Hi, request a clarification that in this case how much money needs to be deposited in bonds to avail exemption on tax?
Is it the amount equivalent to gain or tax? January 13, 9: Purchased a plot for Rs: Kindly calculate the capital gain. November 24, 1: Please let me know the Inflation indexed capital gain for a property which was purchased in and sold in Based on your updates, if indexation is applied , no capital gain.
January 23, Your 80 lacs is equivalent to You can show cost of acquisition as December 10, 5: Hi sir my mother has purchased one house in with rs. December 12, 9: What will be the capital gain tax with indexation? April 18, 2: Friend first of all your sales is not of long term asset Becouse indexation is only for long term asset which means you should keep the asset for more than 36 months here ur asset is is short term so capital gain for 1st mf is December 16, 2: Hello, my parents bought a flat in for about 10 lacs and spent about 4 lacs doing it up at the time.
Both parents passed away and I inherited the flat which I have just sold for 44 lacs this year in What is my taxable capital gain? And is iit the amount of the gain that can be invested in bonds and what time frame do I need to invest in bonds from time of sale of property? Any assistance you can provide will be very helpful.
Profit calculated this way can be invested in another property within 6 months of selling or invested in infra bonds for 10 years i believe. January 20, I sold a flat in Jan at Will you please adivse me what amount shall I consider for capital gain. February 13, 4: Hello, your cost of aquisation Rs. So your capital gain would be Rs.
February 2, 4: February 3, 4: I want to know, whether i can buy a flat for using indexation or should i be buying a flat for to avoid capital gain taxation? February 3, 8: Can this tax be saved if I 1 Invest in an under construction apartment to be completed only by ? February 10, 1: February 11, 8: I purchased a property in Nov, at a price 86L more then the property 1st house I sold at 63L in Jan, Will i be still liable to pay capital gain tax or covered under the property I purchased a year back?
February 15, 9: February 18, 5: I understand that to avoid tax on capital gain I need to invest this amount in new property. Here my question is do I need to provide this investment related documents to income tax.
And also please help me to provide more details from NRI perspective. February 19, 9: Dear Friend, Capital Gain is calculated only when you sell the property.. And the capital gain will be Sale Price minus the Indexed Cost.. For example if you sell the Property for 6,,, then your Capital Gain will be , 6,, — 5,, And in case if you sell the property for 5,, you wont get any capital gain..
If you have capital gain you need to invest them in a property or you can deposit the money in a capital gain account scheme at a bank recognized by the Government of India.. February 25, I had purchased a semi-finished house from a housing society Rs. The amount was paid in installment in February 27, If I invest a capital gain from sale of residential house into the purchase of Agriculture land within Municipal Corporation or outside municipal corporation and build a farm house.
Is the same exempt from capital gains tax. March 3, 2: She was an Indian Citizen at that time. Rs 1 Crore, Sixty Lakhs. Please advise on following: March 11, 1: I purchased a House in at 3. April 10, 4: May 2, Or do they want just a statement of expenses without any pucca receipt particularly for labour charges, transportation of goods etc.? Its a long term capital gains since the period of holding is more than 3 years.
If your income from all the other sources is less than Rs. April 29, 7: May 21, 4: June 17, 5: May 27, I bought a flat for 27 lakhs in May and now I am planning to sell for 38 lakh.
How much do i need to pay as tax? June 27, 7: I think you can help me! I bought a residential plot land in for Rs. I sold it in at 16 Lakhs. Further I bought a residential land for Rs.
Can the capital gains be set-off against new land purchase else what is my liability. Greek Jobless Rate Steady at Philippines Trade Deficit Widens in November. Fed Cautious on Future Rate Hikes. Ghana Annual Inflation Rate Rises to 9. Canada Holds Interest Rate at 1. Mexico Inflation Rate Edges Up to 4. German Trade Surplus Narrows in November. Australia Trade Balance Narrows in November.
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