)
This refers to the report "Mumbai property prices leave Delhi behind" (August 14). The report shows appreciation rates that are (a) cumulative, and (b) not adjusted for inflation.
The report said that Mumbai showed record appreciation of 25.27 per cent between June 2012 and May 2014. This implies that appreciation per annum is 11.93 per cent. However, in the same period, there has been inflation of 9.63 per cent (this is based on the cost inflation index used for the purpose of computing inflation-adjusted long-term capital gains for taxation purposes). It means that there has been real appreciation of only 2.30 per cent per annum.
Gurbachan Singh New Delhi
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