New Capital Gains Taxation regime
✅An issue has been raised as to what would be the Cost of Acquisition as on 1.4.2001 for properties purchased prior to 2001.
✅For properties (land or building or both) purchased prior to 1.4.2001, the cost of acquisition as on 1.4.2001 shall be:-
✅Cost of Acquisition of the asset to the assesse; or
✅the Fair Market Value (not exceeding the stamp duty value, wherever available) of such asset as on 1.4.2001.
✅Taxpayers can choose either option as per section 55(2)(b) of the Income-tax Act, 1961.
An illustration to explain the same:
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