CAPITAL GAIN ON OLD PRICE OR NEW PRICE...

A FLAT CONSTRUCTED IN 1996 WAS PURCHASECD BY "A" IN 1996.

"B" PURCHASED THIS FLAT IN 2004 AND "B" IS SELLING THE FLAT NOW .B WISH TO KNOW TO ARRIVE AT THE CONST INFLATION BASIC PRICE SHOULD BE OF 1996 OR OF 2004...

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3 Replies

A V Vishal (Advocate) 20 April 2009

2004

Sreenivas (Service) 20 April 2009

Thanks Mr.Vishal.

Abhijeet (Business) 27 April 2009

2004 cost of acquisition would be the relevant cost for B and as far as the cost of construction incurred by A in 1996 is concerned would be irrelavant to B. Hence, cost of acquisition of B (2004) shall be taken as base and indexed.