pinki (CA Final student) (62 Points)
18 September 2008Hi Can please anybody tell me that if a Son has got a property in inheretence after the death of his father.. then From which YEAR Indexation shall be applicable -From the year in which father purchased the House OR the year in Which son got the house???
Thanks in Advance....
Prashant Surve
(Articled Trainee (CA final student))
(22 Points)
Replied 18 September 2008
pinki
(CA Final student)
(62 Points)
Replied 18 September 2008
| Originally posted by :Prashant Surve | ||
| " | Indexation of the year in which father bought the property. |
"
|
Thankyou Prashant but can u please tell me that from where i can study and clarify it..Any book,circular, notification or Any Particular Section of IT ACT
kabrasachin
(none)
(26 Points)
Replied 18 September 2008
Indexation of the year in which father bought the property.
Vijay Budhwani
(AVP Tax)
(326 Points)
Replied 18 September 2008
It is a debatable issue bcoz various authorities have different opinion, however in case of Mrs. Pushpa Sofat, the Chandigarh ITAT has held that the indexation is available of the year in which the previous owner occupied the property.
pinki
(CA Final student)
(62 Points)
Replied 18 September 2008
Thankyou all but can u please tell me that from where i can study and clarify it..Any book,circular,case law, notification or Any Particular Section of IT ACT???
Vijay Budhwani
(AVP Tax)
(326 Points)
Replied 18 September 2008
My dear, Mrs. Pushpa Sofat Vs. Chandigarh ITAT is the case law itself.
Amritansh
(Chartered Accountants)
(47 Points)
Replied 18 September 2008
Hi,
Indexation will be done from the year in which the assets was first held by assessee where as the cost of acquition will be the cost to the previous owner.
So the indexation will be from the date when son got the house.
Regards
Amritansh Agrawal
Rajendra Kumar Sankhla
(Tax Consultant)
(66 Points)
Replied 18 September 2008
| Originally posted by :pinki | ||
| " | Indexation will start from year, in which son occupied or receives the house property. it means that indexation will be available from the year, in which son firstly occupied or received the property. | " |
Vijay Budhwani
(AVP Tax)
(326 Points)
Replied 18 September 2008
Hi Amritansh
I had even read an articl in BCA Journal that the most practical view is that what was held in case of Pushpa Sofat by the Chandigarh ITAT. Because indexation of one year and cost of another year was never the intention of law.
CA Gaurav Gupta
(Practice)
(307 Points)
Replied 18 September 2008
indexation will be available when the assesee first held the assesee. that means cost will be of his father and indexation will be from the transfer.
reason:
when an asset is transferred U/S 49(1) gift, by will, etc above provisions will be attracted.
however if there is cost of addition/ construction indexation will be available from back date (because word first held by assesse is not given there)
refer Girish Ahuja book
srinivasan
(student)
(30 Points)
Replied 19 September 2008
Since the property has been acquired by inheritance, it will b covered by section 49(1), so the next step wiill b to consider which year father has acquired the asset and the year son has received (ie) b4 April 1981 or after 1981. If both b4 April 1981 FMV or COA to previous owner W.E.M. If father b4 and son after April 1981 the yr in which the asset was 1st held by son has 2b considered. Both after April 1981 the 1st yr in which the asset was held by the assesse( son in ur case ).
pinki
(CA Final student)
(62 Points)
Replied 19 September 2008
property has been purchsed and aquired both after 1981
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