Base year Altered for computation of capital gains from 1981 to2001 Base Year shifted to 2001 from 1981 for calculation of capital gains.
The existing arrangements of section 55 offer that for calculation of capital gains, an assessee will be permitted deduction for expense of acquisition of the possession and also expense of enhancement, if any. However, for calculating capital gains in respect of a property gotten prior to 01.041981, the assessee has been allowed an option of either to take the fair market value of the property as on 01.041981 or the real expense of the property as expense of acquisition. The assessee is likewise allowed to claim reduction for cost of improvement sustained after 01.041981, if any
As the base year for calculation of capital gains has ended up being more than three years old, assessees are dealing with authentic difficulties in calculating the capital gains in respect of a capital asset, particularly unmovable home gotten prior to 01.041981 due to non-availability of appropriate information for calculation of fair market price of such asset as on 01.041981
In order to modify the base year for computation of capital gains, it is proposed to amend section 55 of the Act so as to supply that the expense of acquisition of a possession gotten before 01.042001 shall be permitted to be taken as reasonable market price as on 1st April, 2001 and the cost of enhancement will consist of just those capital expenditure which are sustained after 01.042001
Consequential modification is likewise proposed in area 48 so regarding align the provisions connecting to cost inflation index to the proposed base year.
These modifications will work from 1st April, 2018 and will, appropriately, use in relation to the assessment year 2018-19 and subsequent years.
Please Download Financing Costs 2017 From Below link …
Financing Bill 2017, Direct tax Modifications in Spending plan 2017– Download
Other Budget Plan 2017 Updates
- Revised Fee for Delayed Filing of Tax Return– Budget Plan 2017
- Disallowance of devaluation u/s 32 & capital investment u/s 35 AD on cash payment
- TDS Rates U/s 194 J Reduced from 10% to 2% by Financing Costs 2017
- Deemed profit u/s 44 ADVERTISEMENT reduced from 8% to 6% for digital transaction
- Earnings Tax Due Dates
- Tax treatment of dividend gotten from a foreign business
- How to submit Action for Impressive Tax Demand
- Additional Devaluation– Who can Avail?, availability, Rate of Add Dep
- Tax Audit Limitation U/s 44 AB Increased From 1 Crore to 2 Crore AY 2017-18
- Threshold limitation Increased for maintenance of books of accounts
If you have any inquiry or suggestion regarding “Base year Changed for calculation of capital gains from 1981 to 2001” then please tell us through listed below comment box …
1 photos of the "Base year Changed for computation of capital gains from 1981 to 2001"
