Gift of capital asset

Can transfer expenses incurred by previous owner on transfer of gift be claimed as deduction if the property is sold by new owner(assessee itself) ???

Replies (7)

Hi. in my opinion such expenditure cannot be claimed , because under the head capital gain , cost refers to cost of acquisition and cost of improvement and transfer expenses , but however expenditure of transfer expenses has been incurred by the aquirer then it can be claimed as a part of acquisiton because this expenditure is cost incurred to get full title to the asset and thus is of  the capital nature.

Originally posted by : Vrushali Dedhia

Can transfer expenses incurred by previous owner on transfer of gift be claimed as deduction if the property is sold by new owner(assessee itself) ???

transfer expenses incurred by previous owner are paid by last owner only, and the same is not gifted to the receipent, neither it enhanced the utility of capital asset, so it would go like normal maintainance fees as revenue expenditure from hands of previous owner, not to get capitalized at any level. 

i am of the opinion that such expense shall not be deducted because only cost of acquisition and cost of improvement of previous is taken into account for this purpose and not the transfer expenses incurred by him. Expenses incurred only by the assessee on transfer of assets shall be taken in account

Originally posted by : Kunal Jain

i am of the opinion that such expense shall not be deducted because only cost of acquisition and cost of improvement of previous is taken into account for this purpose and not the transfer expenses incurred by him. Expenses incurred only by the assessee on transfer of assets shall be taken in account

AGREED                                                

Originally posted by : Kunal Jain

i am of the opinion that such expense shall not be deducted because only cost of acquisition and cost of improvement of previous is taken into account for this purpose and not the transfer expenses incurred by him. Expenses incurred only by the assessee on transfer of assets shall be taken in account

i am of the opinion that such expenses shall not be deducted becuase such expenses has been claimed by previous owner.

Thank u very much for ur replies..


 

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