Category:
FAQs on Capital Gains
Long term capital gain arising on account of transfer of long-term capital asset 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 transfer of capital asset (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 |
Indexed cost of acquisition is computed with the help of following formula :
Cost of acquisition × Cost inflation index of the year of transfer of capital asset
Cost inflation index of the year of acquisition
Indexed cost of improvement is computed with the help of following formula :
Cost of improvement × Cost inflation index of the year of transfer of capital asset
Cost inflation index of the year of improvement