e.g.A has bought property worth Rs.50800/- in yr 1979.He gifted this property in Nov 2007 to his sister having mkt value of 12.80 lacs. she wants to sell the same for 52 Lacs & she in NRI.
22 January 2012
Since the property has been received by Gift, cost to the previous owner has to be considered. . Since previous owner has acquired the property prior to 1.4.1981, its valuation as on 1.4.1981 or cost which ever is higher, can be taken as cost of acquisition. . For computing capital gains Indexation of cost of acquisition (or value as on 1.4.1981) is allowed. The Indexed cost of Acquisition, so arrived, has to be subtracted from 52.00 lac to arrive capital gains. . Tax @ 20.6% is required to be paid.
CAclubindia
