Indexed cost of acquisition and improvement govern capital gains computation, with indexation restricted for specified transfers and assets. Indexed cost of acquisition and indexed cost of improvement are computed by applying the Cost Inflation Index to the relevant cost base, with acquisition linked to the year the asset was first held or the specified base year, whichever is later. The Cost Inflation Index is notified by the Central Government by reference to 75% of the average rise in the Consumer Price Index (Urban). The text also notes the post-23 July 2024 removal of indexation for most long-term capital assets, a grandfathering option for resident individuals and HUFs in certain land or building transfers, and specified cases where indexation is unavailable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Indexed cost of acquisition and improvement govern capital gains computation, with indexation restricted for specified transfers and assets.
Indexed cost of acquisition and indexed cost of improvement are computed by applying the Cost Inflation Index to the relevant cost base, with acquisition linked to the year the asset was first held or the specified base year, whichever is later. The Cost Inflation Index is notified by the Central Government by reference to 75% of the average rise in the Consumer Price Index (Urban). The text also notes the post-23 July 2024 removal of indexation for most long-term capital assets, a grandfathering option for resident individuals and HUFs in certain land or building transfers, and specified cases where indexation is unavailable.
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