Illustrating Cost of Acquisition under New Capital Gains Tax Regime

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: