capital gain

Save Share

This query is : Resolved

POONAM SHARMA (Querist)

17 April 2009 a person acquire house from his father who purchase it for rs.500000 and incurred 18000 as registration charges.then he sold it

what should be the cost of acquisiton
500000 or 518000????//

plz rply

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

17 April 2009 You should calculate indexed cost of acquisition.

Apply the indexation for Rs.500000 based on the year of acquisition.

Apply the indexation for Rs.18000 based on the year of transfer.

Add both the values you will get indexed cost.

POONAM SHARMA

POONAM SHARMA (Querist)

17 April 2009 ok thanks

POONAM SHARMA

POONAM SHARMA (Querist)

17 April 2009 X acquired the property in the previous year 1982-83 for Rs.5,00,000 and paid Rs.18,000 as registration charges. X transferred his property on 15-9-2005 to his son Y. The market value of the property as on 15-9-2005 is Rs.10,00,000. Y sold the property on 31-5-2008 for Rs.12,00,000. Calculate the capital gain for 2009-10

this is the whole question

POONAM SHARMA

POONAM SHARMA (Querist)

17 April 2009 sale consideration =1200000
less transfer exp =nil

index cost of acquisition =[518000x582]\497

or [500000x582]\497

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

18 April 2009 The first option.
But indexation will be taken of the year of acqusition i.e 1982-83 and not 2005-06.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

18 April 2009 If the property is transferred to Mr.Y with out consideration, I think,Mr. Nitin Wadhwani's view is correct.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

18 April 2009 Rs. 518000

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)

18 April 2009 no indexation is allowed as holding period by Y is less than 3 years

POONAM SHARMA

POONAM SHARMA (Querist)

18 April 2009 why for 82-83
provision is= [cost of acquisition of pr owner X cii for year of transfer]\cii of the yr for which the assesse fst held the asset

so as per this provision
[518000 X 582]\497

?????/

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

18 April 2009 It was held in the case of Shekhar sharma v/s calcutta ITAT that benefit of indexation is allowed from the year the assessee acquired the asset as in case of normal transfer.

POONAM SHARMA

POONAM SHARMA (Querist)

18 April 2009 then what should i do

kuch bhi samajh me nai aa rha

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

18 April 2009 See if u want to avoid the possibility of a litigation claim indexation from the year in which the asset is first held otherwise if you are daring enough claim from 82-83 itself.