Your long-term capital gains tax liability from sale of property or inherited jewellery would come down, as the government shifted the base year of Cost Inflation Index (CII) to 2001, instead of 1981. Based on the existing CII, the new index value has been calculated. For this, the index value of 2001 has been changed to 100 (base year) from 426. The two examples show how a rise in property value reduces tax incidence. These numbers are only for illustrative purposes. More clarity will emerge once the Income Tax Department notifies the new CII in FY18.
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