This tool helps the assessee to know Cost Inflation Index prescribed under the I.
T. Act for different years. Cost Inflation Index is the mark up on the Cost of acquisition
/ Improvement of the asset prescribed as per law; to match with the current sale
price of the asset. This tool helps the assessee to derive the amount of long term
capital gain. Long term Capital gain arises when long term capital asset is sold.
Long term capital asset means – If a capital asset is held by an assessee for more
than 36 months, then it is known as Long Term Capital Asset.
However in the following cases an asset, held for more than 12 months shall be treated
as Long Term Capital Asset.
- Equity or preference shares in a company whether quoted or not.
- Securities (like debentures, Government Securities) quoted in a recognized stock
exchange in India.
- Units of UTI whether quoted or not
- Units of mutual fund specified u/s. 10(23D) whether quoted or not
- Zero coupon bonds whether quoted or not.