Economics · Economy

Identify the correct set of statements regarding the Cost Inflation Index (CII) and its application in India from the options provided below: Statement 1: The CII for a specific financial year is applicable to all assets sold during that year, regardless of the month of sale. Statement 2: If an asset was purchased in 1995, the indexation starts from 1995 using the old index. Statement 3: The cost of improvement made to a building in 2010 can be indexed using the CII of 2010-2011. Statement 4: Indexation is not available for short-term capital assets, which are generally those held for less than 36 months (or 24 months for land/immovable property). Statement 5: The CII is calculated based on the Wholesale Price Index (WPI). Statement 6: If the indexed cost of acquisition exceeds the sale price, the resulting long-term capital loss can be carried forward for 8 years. Statement 7: Personal effects such as jewelry and paintings are considered capital assets and are eligible for indexation benefits.