If jewellery is sold by an individual which was gifted to him on his marriage 5 years back, then how would capital gain be calculated??
As per section 49(ii) if a gifted asset is sold then cost of acquisition is the cost to the previous owner. And as per section 48 indexation will be applicable from the year in which the asset was acquired by the assessee i.e. the date of marriage in this case..
Also i have read somewhere that in case if a gift is sold then cost of acquisition will be the amount on which the tax has been paid by the assessee in the year of acquisition. But in this case gift is received on marriage hence exempt from payment of income tax.
M really confused. Please help me
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