GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In the case of compulsory acquisition, the indexation of cost of acquisition or improvement shall be done till the :
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In which the full compensation received
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In which part or full consideration is received
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Previous year of compulsory acquisition
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None of these
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Explanation:
Detailed explanation-1: -A sum that bears to the cost of improvement in the same proportion that the cost inflation index for the same year that the asset is moved exhibits to the cost inflation index for the year that the improvement to the asset was made is referred to as the “indexed cost of improvement.”
Detailed explanation-2: -Thus, if any capital asset (acquired before April 1, 2001) is transfered then assessee has an option to take its cost of acquisition either as fair market value as on April 1, 2001 or its actual cost.
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