Answer to Question #173684 in Management for Sweta

Question

Purchased a property in the year 2000 for rs. 15 lacs.

Sold the property on December 2019 for rs.30 lacs.

Fair market value as on 1/4/2001 was 22 lacs.

Calculate indexed cost of acquisition.

Answer 1

Indexed Cist of Acquisition

 

 

Indexed cost of acquisition = [CII fir the year of sale of the asset/CII for the year the asset was acquired]

= rs 15 lacs × {30/15}

=15×2

= 30 lacs