Long term capital gain arising on account of the transfer of long-term capital assets will be computed as follows:
|
Particulars |
Rs. |
|
Full value of consideration (i.e., Sales consideration of asset) |
XXXXX |
|
Less: Expenditure incurred wholly and exclusively in connection with the transfer of capital assets (E.g., brokerage, commission, etc.) |
(XXXXX) |
|
Net sale consideration |
XXXXX |
|
Less: Indexed cost of acquisition (*) |
(XXXXX) |
|
Less: Indexed cost of improvement, if any (*) |
(XXXXX) |
|
Long-Term Capital Gain |
XXXXX |
The indexed cost of acquisition is computed with the help of the following formula :
Cost of acquisition * Cost inflation index of the year of transfer of capital asset/ Cost inflation index of the year of acquisition
The indexed cost of the improvement is computed with the help of the following formula :
Cost of improvement * Cost inflation index of the year of transfer of capital asset/ Cost inflation index of the year of improvement
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