Capital gains indexation factor
Cost Inflation Index (CII) is an Index which finds its utility in the income tax act at the time of computation of Long Term Capital Gains to be disclosed in the Income Tax Return.The Cost Inflation Index is issued by the Central Board of Direct Taxes (CBDT) and the figures that have been issued by the CBDT till date have been disclosed herewith for your Ready Reference. As per CPI – Cost Inflation Indexation have got the calculation for Capital Gains on Sale of Property as Rs.5,83,826/-. Sir, I want to know what will be Rate of Tax for Capital Gains. The Sellers – 2 in nos who are beneficiaries of the Sale Proceeds of the Property are aged less than 60 years AND do not have Annual Income above Rs.1 lac. Long Term Capital Gains - If your have sold your house after a three year period from the time of purchase, then any profits from the sale is considered to be a long-term capital gain. Following indexation, this gain will incur a tax of 20%. However, tax exemptions can be claimed in this case unlike in the case of short term capital gains.