Purchase Value

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This discussion explains how to calculate capital gains tax when a property, originally purchased in 1963, was gifted to a wife in 2022 and subsequently sold. The key is to determine the 'purchase value' using the Cost of Acquisition (COA) as of April 1st, 2001, by obtaining the circle rate from the Sub-Registrar's office. Importantly, the capital gain will be taxed in the hands of the son due to clubbing provisions, not his wife.

saravanan

saravanan (Querist)

22 May 2025 Mr. A , Property purchase on 1963 at the cost of Rs.14000/- after Mr.A. expired, his son gift this property to his wife by Gift Deed on 19.11.2022. His wife sold this property on 19.7.24 sale of Value of Rs.32 lac. How to Calculate capital gain tax and purchase value?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

22 May 2025 It will be long term capital gain based on COA as of 01.04.2001. Get circle rate from Sub registrar office as on 01.04.2001. The capital gain will be taxed in the hand of SON (& not his wife), due to clubbing provision.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 September 2025 Good luck.....

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