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 1^st April 1981, can be taken at actual cost, or the fair market value as on 1^st 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 1^st April 1981.

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