rchase of property under section 54 ?
3. Capital gains from transfer of agricultural land under section 54B ? Long-term capital gains are always computed with indexation. All that one has to do is to take the cost, multiply it with the index for the year of sale or transfer and divide the result with the index for the year during which the asset was purchased.
There is no difference in computing long-term capital gains of listed (or unlisted) securities, units, agricultural land or real estate. In the case of agricultural land, the capital gain may either be long-term or short-term. The action of purchasing any other land, whether in urban areas or otherwise, within two years attracts Section 54B as long as the newly purchased land is used for agricultural purposes. A friend retired from government service in July 2003 and so received regular salary for four months (April
3. Capital gains from transfer of agricultural land under section 54B ?
Tarkamal Singh
| Cost Inflation Index | |||
| Financial year | Inflation index | Financial year | Inflation index |
| 1981-82 | 100 | 1993-94 | 244 |
| 1982-83 | 109 | 1994-95 | 259 |
| 1983-84 | 116 | 1995-96 | 281 |
| 1984-85 | 125 | 1996-97 | 305 |
| 1985-86 | 133 | 1997-98 | 331 |
| 1986-87 | 140 | 1998-99 | 351 |
| 1987-88 | 150 | 1999-00 | 389 |
| 1988-89 | 161 | 2000-01 | 406 |
| 1989-90 | 172 | 2001-02 | 426 |
| 1990-91 | 182 | 2002-03 | 447 |
| 1991-92 | 199 | 2003-04 | 463 |
| 1992-93 | 223 | 2004-05 | Not declared |