Monday, September 17, 2012

COST INFLATION INDEX Financial year 2012-13 NOTIFIED


on Monday, September 17, 2012

CBDT has announced the Long awaited Cost Inflation index for the Financial Year 2012-13 . Cost Inflation index is used to calculate Long term capital gain on sale of Capital assets.

Long term capital gain in case of assets other than securities is applicable where holding period of asset is more than 3 years and in case of securities the period is one year.

Capital Gain Index for Financial year 2012-13 is 852 
SECTION 48, EXPLANATION (v) OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS - COMPUTATION OF - NOTIFIED COST INFLATION INDEX FOR FINANCIAL YEAR 2012-13

NOTIFICATION NO. 38/2012 [F. NO. 142/2/2012-SO(TPL)]/SO 2187(E), DATED 17-9-2012


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 amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, number S.O. 709 (E), dated the 20th August, 1998, namely:-

In the said notification, in the Table, after serial number 31 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-
Sl. No.
Financial Year
Cost Inflation Index
(1)
(2)
(3)
"32
2012-13
852"


Calculation of Long Term Capital Gains (LTCG))

Long Term Capital Gains is computed as below :

LTCG = Full value of consideration received or accruing - (indexed cost of acquisition + indexed cost of
improvement + cost of transfer)

Where, Indexed cost of acquisition =Cost of acquisition x CII of year of transfer /CII of year of acquisition

Indexed cost of improvement =Cost of improvement x CII of year of transfer  /CII of year of improvement

CII = Cost Inflation Index (Please see chart given below)

Tax liability on LTCG to be taken at 20%.

If total income other than LTCG is less than zero slab,LTCG over the zero slab only attracts tax at 20%.


Download Cost inflation index 1980-1981 to 2012-13

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  1. thanks Simple Tax , we are waiting for the Index

    ReplyDelete
  2. What is Bare Notification NO. ?

    ReplyDelete
    Replies
    1. Notification no is 38/2012 dated 17.09.2012

      Delete
  3. Please tell me that, I Have buy new house with my brother sharing in 2005, in my brother balance sheet what ever he contribut amount, it's is show but not in my balance sheet, so please tell me how how to show in my balancesheet

    ReplyDelete