15 May 2013
Pursuant to clause (iii) of Section 47 of Income Tax Act, 1961, transfer of asset under will is not regarded as transfer. Hence, there is no tax consequence for this transfer. However, when the same asset is being sold by trust to third party, pursuant to section 49, the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be.
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