Posted by : CS K. K. Agrawal Feb 4, 2017

Markets of property, shares and jewellery are speculative in nature. People buy these assets either for security (Investment) or for speculation. The transactions in these assets are also subjected to capital gain tax.

Capital gain can be either long term or short term depending upon the period of holding. Long term is subjected to less tax than short term. Rate of tax on long term ranges from 0% to maximum 20%.

The other benefit of long term asset that they can be indexed. Govt. has come out with index table called Cost Inflation Index whose base year was fixed as 1-4-1981. 

In Finance Bill 2017 the Govt. has taken a very bold step and has shifted the base year from 1981 to 2001 for the benefit of investors.

Also period of holding of land and / or building has been reduced from 36 months to 24 months.

Kudos to our Finance Minister Mr. Arun Jaitely. Wonderful job sir.

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Cost Inflation Index base year 1-4-2001
2001-02
100
2009-10
148
2002-03
105
2010-11
167
2003-04
109
2011-12
184
2004-05
113
2012-13
200
2005-06
117
2013-14
220
2006-07
122
2014-15
240
2007-08
129
2015-16
254
2008-09
137
2016-17
264














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