Hi friends I have a query on capital gain tax on the following issue:
Example: Mr. A aquired an Cpital asset by inheritance from his father on May,05-2008. His father aquired the sais asset on 1972 for Rs 200000. F.M.V as on 01.04.1981 was Rs 500000. On Januray 2010 Mr.A sold that asset for Rs 3500000.
Now as far as my understanding , Mr A has an option to take either cos of asset (i.e., 2 lacs) OR F.M.V as on 1.04.1981(i.e., 5 lacs) whichever is beneficial and naturally he would opt for RS 5 Lacs at the time of calculation of Cost Of Acquistaion as cost to Previous Owner [Ref:sec 49(1)]
NOW MY QUERY IS WHAT WOULD BE THE CII ....IS IT 1981 i.e., 100 OR AS PER ASSET AQUIRED BY ASSEESSEE OF THE YEAR 08-09 i.e., 582
Many of my friends are talking about sec 49(1).....but I think this provion is saying about the option to assesse regarding choice of Cost Or F.M.V of 01.04.1981 which ever is beneficial to him. not about the CII to be used.
I am really confused on this matter.........Please help me with explanation....pls.......
CAclubindia
