27 August 2010
hiii.... i have a query regarding capital gain treatment. ..my dad has sold a ancestral property which was acquired by my DADA JI as a refugee in 1950...wat shall be the cost in my father hands while computing capital gains ....and wat r alternative to save tax.... plz reply... also at wat amount i should take it in his books
27 August 2010
Since the property was purchased before 1980 u can take market rate as on 01.04.1981 as the deemed cost of acquisition and indexation will be allowable from 01.04.1981 or the date when it was inherited by your father whicheve is later.
If it was a residential property the gains can be invested in purchase of new residential house property or also in bonds u/s 54EC upto Rs. 50 lakhs.
CAclubindia
