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Cost Inflation Index for FY 2011-12 notified at 785 reflects a rise of 10.4% over last year’s 711

             Readers are aware that for purposes of computation of long term capital gains, a taxpayer is entitled to compute Indexed Cost of Acquisition, which is determined with reference to the Cost Inflation Index (CII) notified by the Government for the relevant financial year.

             Vide its Notification No.35 of 2011 dated 23-06-2011, the Central Government has notified the Cost Inflation Index (CII) for FY 2011-12 at ‘785.’ The CII for FY 2010-11 was ‘711.’ The increase of 74 points during the past one year reflects a rise of 10.4% in the Cost Inflation Index, also confirming the fact that the common man has continued to suffer under the double digit inflation impact! (more…)


Sell a Land in Ahmedabad & Enjoy Tax Exemption

Via Investment of an Apartment in London!

It may appear too good to be believed, but it is true! With the Foreign Exchange Management Act (FEMA) having liberalized remittances by resident Indians for their annual overseas investments upto US $ 2,00,000 and with the Income-tax Act enabling tax exemption of long term capital gains (LTCG) in case of an investment made in either the purchase or construction of a residential house, you can now plan to sell your land in Ahmedabad and invest funds even in a London apartment so as to enjoy tax holiday. (more…)


Payment of House Rent & Interest on Housing Loan

to Family Members can prove a Win-Win Situation !


Roti, Kapda but No Makaan!

Analyzing Tax Gain & Pain In The New EET Regime

  • Tax Incentives for Housing Scrapped: Current deductions in respect of interest & repayment of housing loan abolished under the new Code.
  • Higher Deduction For Savings & Children’s Education: Individual & HUF entitled to an aggregate deduction of upto Rs.3 lakhs in respect of permitted savings & children’s tuition fees payment, as compared to current ceiling of Rs.1 lakh.
  • Accretions Exempt but Withdrawal Taxable: No tax on accretions to the permitted savings. However, any withdrawal from permitted savings to be taxed.
  • Tax Shelter for Old PF/PPF Accumulations: Future withdrawals out of accumulated balance of PF & PPF as on 31stMarch, 2011 to enjoy special exemption. (more…)

Not the Common Man’s Tax Code!

Small Salaried & Investors To Feel Soar!


Amar Bhatt, a middle class employee earning monthly salary of Rs 40,000 (annual Rs 4,80,000), currently manages to maintain a zero tax status by availing tax-free LTC & medical perks of Rs 70,000, deduction of interest on housing loan of Rs 1,50,000 and repayment of such loan of Rs 1,00,000 eligible for deduction u/s.80C.He is bound to be shocked when he gets to know that with the elimination of the exempt perks and scrapping of housing deductions as proposed under the new Direct Tax Code, his taxable income of Rs 4,80,000 will attract a straight tax of Rs 32,000. (more…)

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