What is the Cost of Inflation Index for FY 2017-18 or CII with base year 2001-02?īelow is the complete list of Cost of Inflation Index for FY 2017-18 from new base year FY 2001-02 to FY 2017-18. Below is the chart showing the Cost of Inflation Index (CII) from the changed base year FY 2001-02 to FY 2017-18. Hope you understood the concept and importance of Cost of Inflation Index (CII). Posted: (1 week ago) Capital Gains (if required) for Fidelitys equity and bond funds are generally paid. But in the case of taxation, the LTCG on capital assets will be after adjusted the cost of buying to inflation or Cost of Inflation Index (CII). Rowe Price Retirement 2025 Advisor (PARJX. However, if you do not consider the indexed cost, then in plain the gain may be said as Rs.1 Cr lakh (Rs.1.5 Cr-Rs.50 Lakh). (Note-As per the below Cost of Inflation Index (CII), the CII rate for FY 2017-18 is 272 and for FY 2005-06, it is 117). So the Long Term Capital Gain=Selling Price-Indexed Cost of buying property=Rs.33,76,069. Taxable capital gain R 687 500 - R 2 000 000 Primary residence exclusion R 0 Portion of the capital gain attributable to the property’s use as a non-primary residence: 3/8 x R 1 100 000 R 412 500 Primary residence exclusion will NOT apply. Indexed Cost of Acquisition=(Rs.50 lakh/117)*272=Rs.1,16,23,931. Capital gains tax in 2017: how the new laws Capital Gains Tax in 2017: With federal capital gains tax rates topping out at 23.8 percent, Buyer's Guide Best of Business Asset preservation inc.: capital gain tax rate while other states, like California, have a 13.3 top tax rate. Now the indexed cost of acquisition will be as per above formula i.e. Let us assume that you purchased the property in FY 2005-06 at Rs.50 lakh and sold the same in FY 2017-18 at Rs.1.5 Cr. You have lived in the home as your principal residence for two out of the last five years.Indexed Cost of Acquisition=(Cost of Acquisition/Cost of Inflation Index (CII) for the year in which the asset was first held by the assessee OR FY 2001-02, whichever is later)* Cost of the Inflation Index (CII) for the year in which the asset was sold or transferred.If a home is purchased for 250,000 and sold for 315,000, the capital gain on that home is a 65,000 (excluding fees and commissions). This is your capital gainĪ Special Real Estate Exemption for Capital Gains Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria: A fund seeking long-term capital growth through investments primarily in the common stocks of growth companies. A capital gain is an increase in value between the price an asset (such as real estate or stocks) is sold for and the price that an investor paid for the asset. Subtract this adjusted cost basis from the amount you sell your home for. The total of this is the adjusted cost basis of your home 4. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace. Cost of improvements-including room additions, deck, etc.Cost of sale-including inspections, attorney's fee, real estate commission, and money you spent to fix up your home just prior to sale.
How to Calculate Gain In real estate Capital gains are based not on what you paid for the home, but on its adjusted cost basis. The same is true with selling a home (or a second home), but there are some special considerations. Understanding capital gains in real estate When you sell a stock, you owe taxes on your gain– the difference between what you paid for the stock and what you sold it for.