hiii frnds...
Mr. x give a property on gift to his son on 1-1-2009. the said property was purchased by mr. x on 1-1-2001 at rs. 10lac. now in 2014 the son wants to sell the said property in 45lac..
now the which year will be take for indexation cost...2009 or 2001....
plz reply
why 2001? is any proof in this support?????
Gift of immoveable property is not taxable if the gift is given to a relative. A father has gifted a property in favour of his son. When the son sells the property, the cost of acquisition shall be the cost incurred by the previous / original owner (father) of the property, and therefore, the year shall be 2001 when the father purchased the property.
2001 will be considered for indexation for the reason as explained by Mihir.
Indexation will be done presuming that the assessee acquired the asset in the year 2001 as gift is not transfer for levy of capital gains.
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