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Calculate Indexed Cost & LTCG

About this Calculator

This calculator calculates Indexed Cost of Purchase / Acquisition, Indexed Cost of Improvements (upto three improvements) and Long Term Capital Gain as per notified Index Rates.

Indexed Cost & LTCG Calculator

A. Details of Purchase of the Asset
A1	Select Financial Year of Purchase / Acquisition of the Asset (First financial year in which the asset was held or 2001-02, whichever is later.)
A2	Cost Inflation Index for the Year of Acquisition
A3	Purchase Price of the Asset
A4	Add: Expenses relating to acquisition (e.g. brokerage, registration charges, legal expenses etc.)
A5	Total Cost of Acquisition of the Asset
A6	Indexed Cost of Acquisition of the Asset[ A5 x C2 / A2 ]
B1. Details of First Improvements carried out (if any)
B11	Select Financial Year of carrying out improvement(s)
B12	Cost Inflation Index for the Year of Improvement
B13	Cost of improvements carried out in the Asset
B14	Indexed Cost of Improvement[ B3 x C2 / B2 ]
B2. Details of Second Improvements carried out
B21	Select Financial Year of carrying out improvement(s)
B22	Cost Inflation Index for the Year of Improvement
B23	Cost of improvements carried out in the Asset
B24	Indexed Cost of Improvement[ B3 x C2 / B2 ]
B3. Details of Third Improvements carried out (if any)
B31	Select Financial Year of carrying out improvement(s)
B32	Cost Inflation Index for the Year of Improvement
B33	Cost of improvements carried out in the Asset
B34	Indexed Cost of Improvement[ B3 x C2 / B2 ]
C. Details of Sale / Transfer of the Asset
C1	Select Financial Year of Sale / Transfer of the Asset
C2	Cost Inflation Index for the Year of Sale / Transfer
C3	Full value of consideration received for Sale / Transfer
C4	Less: Expenses incurred on transfer of the Asset (e.g. brokerage paid, registration charges and legal expenses)
C5	Net Value of Consideration

D1	Total Indexed Cost ( A6 + B14 + B24 + B34)
D2	Long Term Capital Gain[ C5 - D1 ]

Exemptions

Section 54:

In case the Asset sold / transferred is a residential house, and if out of the capital gains, a new residential house is constructed within 3 years, or purchased 1 year before or 2 years after the date of transfer, then exemption on Long Term Capital Gain is available on the amount of investment in the new asset to the extent of the capital gains. It may be noted that the amount of capital gains not appropriated towards purchase or construction of a new house within 3 years may be deposited in the Capital Gains Account Scheme of a public sector bank before the due date of filing of Income Tax Return. This amount should subsequently be used for purchase or construction of house.

Section 54F:

When the asset transferred is a long term capital asset other than a residential house, and if out of the consideration, investment in purchase or construction of a residential house is made within the specified time as in sec. 54, then exemption from the capital gains will be available as:

If cost of new asset is greater than the net consideration received, the entire capital gain is exempt.
Otherwise, exemption=Capital Gains x Cost of new asset/ Net consideration. It may be noted that this exemption is not available, if on the date of transfer, the assessee owns any house other than the new asset.

It may be noted that the Finance Act 2000 has provided that with effect from assessment year 2001-2002, the above exemption shall not be available if assessee owns more than one residential house, other than new asset, on the date of transfer. Investment in the Capital Gains Account Scheme may be made as in Sec.54.

For more information on the subject, please visit Taxability of Capital Gains.

Updated : Feb 03, 2021

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