Saurabh Mittal, CFP , has been speaking on Radio 94.3 in Good Morning Mumbai
Chandigarh: Sunita Shastri
Radio 94.3 in Good Morning Mumbai Show with Hrishi K. He has explained about Cost Inflation Index is one of his conversation with Hrishi K. You can hear his conversation with visual on this youtube
In this video Saurabh Mittal has explained about Cost Inflation Index.e.g. If you buy a house of worth 5 crore in 2015 and sell in 7 crore in 2018 . The profit will be 2 crore, on which the tax would be too much. To save from heavy tax, government has introduced CII.It is used for calculating increase in the price of goods and assets due to inflation.The rate of inflation is translated into money value revaluing the asset from the original price thus lowering the capital gains and tax.Why is CII used in income tax? It is used for capital gain asset like gold, debt, real Estate and Mutual funds.The rise of the asset is due to the inflation. The capital assets are recorded as cost price.Due to Inflation, the value of the assets increase.Cost price is not recalculated year after year.At the time of the sale, the sale price is high due to inflation, which leds to high tax.Taxes will be matched to the inflated rate of the asset. The person will pay only on the real actual gain and not the inflated rate.We will also send articles written by experts on financial issues on Thursday called thursday Trivia, if you wish to unsuscribe do respond back to us.
