Indexation rate

Indexation shall be from 1995-96 but period of holding shall be counted from 1981. (although in both cases, it will be Long Term)..

AGREE WITH ARVIND SHARMA...

Ms.Tanvi Gupta

Please refer to Section 49(1)(ii) of Income-tax Act, 1961.  I am hereunder reproducing the relevant portion of the section.

Section 49- Cost with reference to certain modes of acquisition.-

(1) Where the capital assesse became the propoerty of the assesee-

(i) --------

(ii) under a gift or will;

(iii)(a)---(b)---(c)---(d)--(e)--

(iv)---

the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be.

Explanation.- In this sub-section the expression "previous owner of the property" in relation to any capital asset owned by an assessee means the last previous owner of the capital asset who acquired it by a mode of acquisition other than that referred to in clause (i) clause (ii) or clause (iii) or clause (iv) of this sub-section.

Hope you have got the clarification.

Best Wishes

Sathikonda

the period of holding , from 1981

indexation from 95 onwards

and cost being taken to be the same as that of previous owner...:-)

agree with arvind sharma

but in vinod gupta sir mod.its d date of acq. by the previous owner....?

Period of holding shall be taken from 1980-81. however indexation shall be done form the year in which the assesse got the property i.e.1995-96

Indexation 1995

Period of Holding considered from 1981

Long term Capital Asset

If you go as per the definition of indexation, its 1995.......However there is a 2011 Mumbai HC judgment      (i think Manjula Shah)  which says it should be 1981.......

Dear All I request all of you to kindly refer to the provisins of section 49 of Income-tax Act, 1961. You wil not have any confusion.

Best Wishes

Sathikonda

Indexation from 81 as it is received as gift for which no consideration is paid.