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Capital Gains-Short/Long Term

10 June 2024

Dear Sir, I received gift a building (from father) on 01/08/23, and I sold it on 15/12/23, how treat it as long or short term capital gain. pls...

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16 Replies

CA Anoop Kumar Sharma (Accounts Manager) (2065 Points)
Replied 10 June 2024

For the calculation of the holding period is counted from the date of your father's ownership, not from when you receive gifted it. and in your question your father holding information is missing.

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sabyasachi mukherjee (27579 Points)
Replied 10 June 2024

First know what is capital asset, then transfer . then short term and long term.

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Tapas Samadder (536 Points)
Replied 10 June 2024

Dear Anup sir, I have taken ownership from 01/08/23, and it is a building, so, pls. clarify now.

CA Anoop Kumar Sharma (Accounts Manager) (2065 Points)
Replied 10 June 2024

I want to know about date your father acquired ownership, not the date it was gifted to you. Capital assets such as land, buildings, and house properties are considered long-term capital assets if they have been held by the owner for 24 months or more.

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sabyasachi mukherjee (27579 Points)
Replied 10 June 2024

If its a gift among blood relation no tax on transfer

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Tapas Samadder (536 Points)
Replied 10 June 2024

Dear Anoop sir, it acquired by my father before 20 years ago, pls. also clarify date of acquisition cost which I consider.

CA Anoop Kumar Sharma (Accounts Manager) (2065 Points)
Replied 10 June 2024

Your father's cost should be considered your cost of acquisition (COA), and the cost should be adjusted using the COI indexation method.

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sabyasachi mukherjee (27579 Points)
Replied 12 June 2024

Yes it's accepted

Tapas Samadder (536 Points)
Replied 12 June 2024

Dear Anoop Sir, I know that to calculate profit in long term capital gain cost value consider before three years cost value, it is correct, pls..

sabyasachi mukherjee (27579 Points)
Replied 12 June 2024

Cost of accqisition plus improvement plus indexation.

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Tapas Samadder (536 Points)
Replied 14 June 2024

Dear Anoop Sir, I know cost of indexation, only confirm me that I consider acquisition cost before three years cost plus indexation, pls..

sabyasachi mukherjee (27579 Points)
Replied 15 June 2024

Tenure of capital gain short term or long term

CA Anoop Kumar Sharma (Accounts Manager) (2065 Points)
Replied 15 June 2024

Dear sir

According to the Income Tax Act, if assets are received through inheritance/gifted the cost of acquisition is considered to be the same as the original cost at which your father purchased those assets. However, if the assets were acquired before 2001, the cost of acquisition is taken to be the fair market value as of 2001.

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