The Telegraph
Monday , December 3 , 2012
Since 1st March, 1999
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Cost index

I want to sell our house at Varanasi built in 1960-61. What is the relevant cost inflation index for computing the capital gains?
Mihir Baran Das, Calcutta
The cost inflation index is used to calculate the long-term capital gains on the sale of assets under Section 48 of the Income Tax Act. The cost inflation index is notified from April 1, 1981, that is considered to be the base year and is valued at 100. Since your property was built in 1960-61, that is before the index was introduced, you have to first find out a fair market value of the property as on April 1, 1981, from the relevant authority. If you are selling the property in 2012, the index for 2012-13 is 852. The formula for computing the indexed cost in your case will be (Index for the year of sale/Index in the year of acquisition) x actual fair market value on April 1, 1981.
Age threshold
I will be 60 years on January 31, 2013. Will I be able to get the benefit of the Rs 2.5-lakh exemption limit for senior citizens for assessment year 2013-14?
Amitabha Dev Roy, Konnagar
Since you will turn 60 years during financial year 2012-13, you will be considered a senior citizen and will be entitled to get the exemption limit of Rs 2.5 lakh for assessment year 2013-14.
Action time
I have deposited a sum of Rs 90,000 as FDR with M/s Jaiprakash Associated Ltd. Noida, Delhi. I have requested the company to send me the interest and the TDS certificate for the year ended March 2012 which is required for the IT return. The company is not responding in spite of my several reminders. What is the remedy?
Sunita Devi Banka, Calcutta
For non repayment of deposit and/or interest, you can consider filing your petition with the Company Law Board under Section 58A(9) of the Companies Act, 1956. The matter may also be bought to the notice of the Securities and Exchange Board of India as investor grievance.
If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to:, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001.