How to calculate capital gains after the new revision of base year
Want to repeat calculation of capital gains after base year revision? Looking out for the detailed procedure? Here, on this page find responses to yuor queries.
From last year's budget, the base year for calculating capital gains is now changed to 2001 instead of 1981.
Though I read a few sources in the internet, I am not able to understand it properly.
Suppose I have purchased a residential property say in 1995 for an amount of Rupees Five lakhs. Suppose I have spent another Two lakhs in 1999 for improvement. Suppose I am selling it in 2017 for Twenty lakhs. Then how the capital gains is calculated using the new indexation? Please do not repeat the bare act or text. Kindly show it practically with above example figures.
My question is: how to arrive at the cost as on the new base year from the original cost and also improvement? That is, the five plus two –seven lakhs would have become some other amount due to inflation as on 2001 also. How that figure is calculated?