26 December 2015
Sir, If a person purchase the house property in 1967 value Rs-2000/-. In May 2015 the person died and this property is transfer to his 5 legal heirs. In Dec 2015 his leghisal heirs sold the property each legal heirs receive Rs- 275400 . Which year is taken is base for cost of indexation ?? what is the tax treatment in this question??
28 December 2015
Dear In this case base year would be 1981. The cost of house will be same as the value of property on 01/04/1981. For this purpose you should refer the collector rate of the area where the property is situated. The indexation done prior to 01/04/1981 would be ignored.
CAclubindia
