Gift

cost to X will be the coa.

THANKS FOR THE REPLY. BUT AS PER S.49(1), only cost to the previous owner is mentioned. moreover x is not hthe absolute owner when she is alive.

plz if u can eloborate on calculation of cost.

X only paid lease rentals. and

 y lease rentals till f.y1997-98 and then got transferred in her name

 property transferred   X>Y>Z

here no consideration is passed from Z >Y>X

exercise of will takes place only after the demise of the person who made the will

the lease premium paid by X is the COA

rentals are not to be calculated as COA

what is the diff between lease premium and lease rentals sir...

at the time of taking posession the lesse pays certain amount to lessor as premium ( you can say interest free deposit)

lease rental is the running maintainance or rent, for using the property not to be capitalized.

from 1932-33 to 1997-98 they paid lease rentals ..

do i need to sum those figures as such.OR do i need to compute indexation for each year?????

plzzz clarify

then only the lease premium is to be indexed

yes, only lease premium paid by X is COA

In your problem, it is mentioned Y paid Rs.61000/- and got the property registered in her name. It is not clear about the nature of title - ie; leasehold or freehold    .                           

Further, where the capital asset became the property of the assessee - under a gift or will, cost of acquisition will be deemed to be the cost for which the previous owner of the property acquired it.  So, the cost incurred by Y needs to come into picture. 

Furthermore, lease rentals (in my opinion) are of recurring nature and is a charge for the usage of the property and does not come within the purview of any improvement or basic cost.