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Capital gain

Prabhudevaru (Article) (105 Points)

24 February 2011

Mr X purchased house property on 16/6/1992, Gifted to Y on 18/6/2004 if Mr Y Transfer the property to Mr Z. so for which year Mr Y can avail the benifit of cost of indexation

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10 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 24 February 2011

It will 2004 for Y.

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Prabhudevaru (Article) (105 Points)
Replied 24 February 2011

Thanks for response

see pankaj as Mr Y not paid any considerations for that, how can he avail benifit for 2004,

Pankaj Arora (Learner) (3134 Points)
Replied 24 February 2011

X transfer property as gift deed so cost of Acquistion for Property to Y will be Nil at the timing of selling property whole LTCG will be taxable in hands of Y.

Athmaram (Articled Assistant) (170 Points)
Replied 24 February 2011

Mr Y can avail the benefit of cost of Indexation only for the Financial Year 2004 - 05. As it is the year on which the property is transfered from the original owner (Mr.X) to the transferee (Mr.Y).

Regards

Ram

Prabhudevaru (Article) (105 Points)
Replied 24 February 2011

what is the treatment if he obtained the property by partition from family

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Arjun (CA Final) (106 Points)
Replied 24 February 2011

Indexation benefit from year 2004

Prabhudevaru (Article) (105 Points)
Replied 24 February 2011

what is the cost of acquisition

Pankaj Arora (Learner) (3134 Points)
Replied 24 February 2011

cost of acuqusition will be Nil for Y.........

Kumar Babu.G (Chartered Accountant) (1597 Points)
Replied 25 February 2011

1.As per Sec 47(iii) any transfer of a capital asset under a gift or will or an irrevocable trust : [Provided that this clause shall not apply to transfer under a gift or an irrevocable trust of a capital asset being shares, debentures or warrants allotted by a company directly or indirectly to its employees under [any Employees’ Stock Option Plan or Scheme of the company offered to such employees in accordance with the guidelines issued by the Central Government in this behalf];]