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Change in base year for Cost of Improvement & Cost of Acquisition

Change in base year for Cost of Improvement & Cost of Acquisition :

 

CLAUSE(S) OF
FINANCE BILL,
2017 		 PARTICUL ARS OF AMENDME NTS SECTION AMENDMENT / NEWLY
INSERTED		 APPLICABLE
W.E.F. 		 BRIEF OF AMENDMENT 
24 Change in
base year for
Cost of
Improvement
& Cost of
Acquisition		 55(1)(b)(2)
55(2)(b)		 Amendment 1/4/2018 As the base year for computation of capital gains has
become more than three decades old, assessees are
facing genuine difficulties in computing the capital
gains in respect of a capital asset, especially immovable property acquired before 01.04.1981due to nonavailability of relevant information for computation of fair market value of such asset as on 01.04.1981. therefore base year for the calculation of Cost of Acquisition and Cost of Improvement is changed to 01/04/2001.

(Author’s Note:- This move of government is much
appreciated by section 197 (1) (c) of IDS Scheme,
according to which case of previous all years can be
opened in case of non filling/ wrong filling of IDS. By
changing the base year Government has reduced the
number of years for which case can be reopened
alongwith litigation atleast in respect of immovable
properties.)
Budget 2017 | Adreeja Kaur |

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