cap gain

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CA Vijeta Verma (Querist)
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03 August 2010 as per sec 49(1) if the assessee acquires asset by mean of gift,will,succession,inheritance then the COA to the assessee is equal to the cost to previous owner.
but as per sec 47(iii) transfer of capital asset under a will or gift is not a transfer??

so if both situations persists in the que at a time then what to do?
for ex(VK singhania pg-421) X purchase debenture of A ltd on 1.1.2006 for Rs20000 & gifts it on 10.6.2006 to his friend Y who dies on 13.3.2007 & as per his will it is given to his son Z..who sells it on 10.11.2009 for Rs86000...what shall be the amount charged as cap gain in the hands of Z

Aditya Maheshwari

Aditya Maheshwari (Expert)
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03 August 2010 Difference between the cost of acquistion of the previous owner which is the cost of previous previous owner and selling price i. e. 86000 - 20000.

CA.Pujah

CA.Pujah (Expert)
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04 August 2010 I think u r mixing the two things.

Suppose A transfers a capt asset to B u/s 47 (iii) and later B sells the same to C.

1) Now as per sec 47(iii) transfer of asset from A to B is exempt as it is not considered a transfer, so no capt gain.

2) when B sells to C capital gain arise to him which is taxable and COA for the same would be calculated w.r.t prov of Sec49(1).

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