21 July 2010
right from the section 54 TO 54F it is being said that the so called purchased asset cannot be transfered with in a period of 3Years from the date of its purchase. then what if such is gifted to some person. is the exemption will be withdrawn? please guide me in this regard. {gift is not a transfer U/S 47}
22 July 2010
such exemption will be withdrawn if the party you are making the gift transfers it as per Section 2(47) within 3 years.
For counting 3 years, the period you held the asset shall also be counted.
If the asset is sold as stated above, the captial gains which were exempted u/s section 54 shall be reduced from the cost of the asset and accordingly would be taxable in the hands of the party you have gifted the asset.
CAclubindia
