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How can a buyer calculate the indexation?- Property Hotline
Posted
July 7, 2016
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231
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July 7, 2016
231
4
1.73%
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3:17Now PlayingBe Un Confused
Expert: Samir Kanabar, Partner- Tax and Regulatory Services at EY.
Question: I have purchased a property over a period of 5 years. We paid instalments from the day we booked flat till the day we got possession. But when the different instalments are made in computing the cost of acquisition do we index each of the instalments that are paid or do we just pay on the date of the possession and say the total amount was something and therefore got the index from that date onwards only?
Answer: There are two things
1) Payment of purchase price under instalment is the matter of cash flow and commercial terms
2) For tax purpose it is important to know the purchase price and when was the agreement signed
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