Friends,
My Friend has received a capital asset being vacant land from his mother on March 2008 by way of settlement deed executed in his favour. This capital asset was acquired by his mom in the year 2005 for a lower consideration say X. But the settlement deed was executed for a higher consideration say Y. My doubt is whether the settlement would be considered as valid transfer and capital gains would be calculated in hand of son taking cost of acquisition as Y or cost to previous owner X (as no consideration was paid at time of settlement) or should it be taxed in hands of mother.
Note: The sale deed for the capital asset sold in Fy 2013-14 has been executed between the son and the buyer.
CAclubindia
