16 June 2009
Treatment of indexation in case of inheritence,gift. should we give the indexation from the period in which the previous owner acquires the capital asset or from the date when the capital assest is gifted to the date of sale.
16 June 2009
For the purpose of indexation,in the cited query,cost inflation index for the first year in which the asset was held by the assessee or for the year beginning on 1/4/1981 whichever is later should be taken in the denominator. Ref:- explanation (iii) to section 48 of the Income tax Act,1961. However a contrary view is taken by Income tax Appellate Tribunal in a case reported in 89 ITD 1.
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