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Rashmin Sanghvi & Associates

Chartered Accountants

220, 2nd Floor, Arun Chambers,
Tardeo Road,
Mumbai - 400 034,
Maharashtra, India.

Tel. Nos.: (+91 22) 2351 1878, 2352 5694.

Fax : (+91 22) 2351 5275.

Email : [email protected]

 
Home Articles Taxation         Share :

Budget 2017Chapter G

33. Shifting of base year from 1981 to 2001 for Computation of Capital Gains [S. 48 & 55]:

33.1 As per the current provisions, in computation of Capital Gains, the cost of an asset acquired before 1st April 1981, can be taken at actual cost, or the fair market value as on 1st April 1981, at the option of the assessee (i.e. whichever is more beneficial to the assessee).

33.2 The base year of 1981 is more than 3 decades old. Practical difficulties are faced by people to obtain Fair Market Value as on 1st April 1981.

Finance Bill has shifted the date to 1.4.2001. Thus the cost of an asset acquired before 1st April 2001, can be taken at actual cost, or the fair market value as on 1st April 2001, at the option of the assessee.