02 July 2011
My father purchased a property in 1973 for 1 lakhs, he expired in 1996, the property was transferred by inheritance. I sold it in 2011 . The fair market value on 1981 was 3 lakh.I would like to know what will the cost inflation index period be for me , whether it will be as on 1/4/1981 or the day it was transferred to me? Also i want to know, on which amount the index rate is applied the fair market value on 1981 or cost of acquisition incurred by my father?
02 July 2011
The indexation benefit will be available to you on fair market price of the property as on 1.4.1981 because in case of inheritance you date of acquisition will be date of acquisition of your father.
CAclubindia
