25 February 2011
When a person transfers its assets in any of the mode referred in 49(1), then indexation for cost of acquisition is taken with respect to d year in with the person becomes the owner, but the indexation for cost of improvement is taken when the improvement takes place i.e if d improvement is done by d previous owner indexation will b taken for d year in which improvement takes place. Is this true(as per singhinia's book). if yes then wat is the logic behind this?
25 February 2011
The indexation is for cost of the assets is taken from the year in which the transferor became the owner, thats true.
But in case of improvements, indexation is not allowed if the improvemtn is done by the previous owner. The idextation is allowed only if the transferor has incurred it.
25 February 2011
In Singhania it has been clearly mentioned that the benefit of indexation will be available from the year in which the asset was first held by the current owner. Indexation in respect to the holding period of the previous owner is, thus, not allowed in the case of improvement as it will be prior to the year in which the asset was first held by the current owner.
28 February 2011
sir: in Singhania there are certain formulas given which are contradicting the statements this is y i asked d doubt, but now it is very clear........thanku:)
CAclubindia
