Arpit Pachisia (CA) (734 Points)
07 March 2014Hello,
My father purchased a property of Rs 1,00,000 on 15/04/1986. As on 01/01/2013, he gifted such property to me (FMV as on 01/01/13 is Rs.30,00,000). Now I want to sell the said property as on today i.e. 07/03/2014 worth Rs. 35,00,000.
What will be the tax implications? Is this STCG or LTCG? Please show me the amount of cost of acquisition?
Thanking You
Prashant Kini
(Article Assistant)
(154 Points)
Replied 07 March 2014
Mihir
(Wealth Manager)
(5293 Points)
Replied 07 March 2014
Sale consideration = Rs. 35,00,000/-
Less
Indexed cost of acquisition = Rs. 670,714/- (100,000 x 939/140)
LTCG = Rs. 28,29,286/-
Hiren shah
(Article Assistant)
(35 Points)
Replied 07 March 2014
Kush Patil
(Article assistant)
(21 Points)
Replied 07 March 2014
Vikas Jain
(Student)
(80 Points)
Replied 08 March 2014
Arpit Pachisia
(CA)
(734 Points)
Replied 08 March 2014
Sorry Vikas,
But above suggestions are true. As the indexed cost of acquisition will be from the date the previous owner acquired it. Hence Indexed COA will be calculated from 15/04/1986 i.e.140.
Vikas Jain
(Student)
(80 Points)
Replied 08 March 2014
neha sharma
(student)
(27 Points)
Replied 09 March 2014
Vikas Jain
(Student)
(80 Points)
Replied 09 March 2014
Arpit Pachisia
(CA)
(734 Points)
Replied 10 March 2014
Hello Vikas,
Read section 49(1) inserted by finance act 2012, where it is clearly written that the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner acquired it as increased by the cost of improvements incurred by the previous owner and the assessee.
Also read clause (i) to (v) of section 47.
I am sure that your doubts will be clear now.
Thanking You
Arpit Pachisia
(CA)
(734 Points)
Replied 10 March 2014
please read the above stated case too i.e. CIT v. Manjula J. Shah
Vikas Jain
(Student)
(80 Points)
Replied 10 March 2014
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