Calculated Cost Of Acquisition

                                            Capital Assets

           A capital asset is a type of asset that is not easily sold in the regular course of a business's operations for cash and is generally owned for its role in contributing to the business's ability to generate profit. Furthermore, it is expected that the benefits gained from the asset will extend beyond a time span of one year. On a business's balance sheet, capital assets are represented by the property, plant and equipment figure.

Personal effect two type:

(1) Long Term Capital Gain

    (2) Short Term Capital Gain

Definition of long term capital gain :- if assets is hold by assesse for more than 36 month immediately preceding the date of transfer.

Definition of Short term capital gain :- if assets is hold by assesse for not more than 36 month immediately preceding the date of transfer.

Period of holding

Period   from date of acquisition to capital assets to date immediately preceding the date of transfer.

Poh <36 month Short term capital gain

If poh>36 month Long term capital gain

year	CII	Inflation
1981-82	100
1982-83	109	9.00%
1983-84	116	6.42%
1984-85	125	7.76%
1985-86	133	6.40%
1986-87	140	5.26%
1987-88	150	7.14%
1988-89	161	7.33%
1989-90	172	6.83%
1990-91	182	5.81%
1991-92	199	9.34%
1992-93	223	12.06%
1993-94	244	9.42%
1994-95	259	6.15%
1995-96	281	8.49%
1996-97	305	8.54%
1997-98	331	8.52%
1998-99	351	6.04%
1999-00	389	10.83%
2000-01	406	4.37%
2001-02	426	4.93%
2002-03	447	4.93%
2003-04	463	3.58%
2004-05	480	3.67%
2005-06	497	3.54%
2006-07	519	4.43%
2007-08	551	6.17%
2008-09	582	5.63%
2009-10	632	8.59%
2010-11	711	12.50%
2011-12	785	10.41%
2012-13	852	8.54%
2013-14	939	10.21%
2014-15	1024	9.05%

Indexation

Cost of Acquisition=30000 on 20/7/2005  

Sale consideration =12500 on 22/8/2014 

Period of holding >36month more than {Ltca} 

Financial year of Acquisition=2005-06 (497) 

Financial year of transfer     =2014-15  (1024)

icoa=  30000*1024  

                         497 

                                            (61811 answer)