period of holding and COA and COI
This query is : Resolved
12 September 2010
Mr. A acquired a house on 01-05-1998 for Rs.25 lacs.
After Mr. A's death on 17-08-1999, it was given to his son Mr. B. Mr. B incurred a expenditure of Rs.5 lakhs on it improvement on 05-08-2002.
On 04-05-2009, Mr. B gifted this house to his married daughter Mrs. C. She sold this on 06-08-2009.
> for computing period of holding of asset, will period for which asset held be MR.B shall be counted..?
> Will cost of improvement incurred by Mr. B be taken into consideration?
After Mr. A's death on 17-08-1999, it was given to his son Mr. B. Mr. B incurred a expenditure of Rs.5 lakhs on it improvement on 05-08-2002.
On 04-05-2009, Mr. B gifted this house to his married daughter Mrs. C. She sold this on 06-08-2009.
> for computing period of holding of asset, will period for which asset held be MR.B shall be counted..?
> Will cost of improvement incurred by Mr. B be taken into consideration?
12 September 2010
1. Yes ,will be counted by virtue of explanation to section 49(1) of the Income tax Act,1961.
2. No, by virtue of section 55(1)(b)(2)(ii) read with explanation to section 49(1) of the said act.
2. No, by virtue of section 55(1)(b)(2)(ii) read with explanation to section 49(1) of the said act.
12 September 2010
thanks
the second point is clear to me, as cost of improvement incurred by the previous owner shall be included as per section 55(1)(b)(2)(ii), and as per explanation to section 49(1) previous owner means last previous owner of the property who acquired it otherwise than modes referred to in section 49(1).... So Mr. B is not previous owner for this purpose.
But for first point, i have doubt. As per explanation 1(i)(b) of section 2(42A), the period of holding includes the period of holding by the previous owner.... So, for this purpose also, the period of holding by Mr. B should be excluded...
Plz explain the same to me..
the second point is clear to me, as cost of improvement incurred by the previous owner shall be included as per section 55(1)(b)(2)(ii), and as per explanation to section 49(1) previous owner means last previous owner of the property who acquired it otherwise than modes referred to in section 49(1).... So Mr. B is not previous owner for this purpose.
But for first point, i have doubt. As per explanation 1(i)(b) of section 2(42A), the period of holding includes the period of holding by the previous owner.... So, for this purpose also, the period of holding by Mr. B should be excluded...
Plz explain the same to me..
13 September 2010
Yes, you are right. I stand corrected to that extent.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Specified Profession
- Tax liability on income of freelancer
- STCG FOR GOLD ETFs
- Loan by Partnership Firm
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
