Capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2012 WHEN CAPITAL ASSET IS RECEIVED U/S.49(1),WHAT WILL BE THE INDEXATION PERIOD, WHETHER FROM ORIGINAL BUYER OR FROM ASSET RECEIVED BY ASSESSEE?

CA. Vikash Dwivedi

CA. Vikash Dwivedi (Expert)

22 September 2012 The indexed cost of acquisition has to be determined with reference to the cost inflation index for the first year in which the capital asset was ‘held by the assessee’. Since the expression ‘held by the assessee’ is not defined under Section 48 of the Act, that expression has to be understood as defined under Section 2 of the Act. Explanation 1(i)(b) to Section 2(42A) of the Act provides that in determining the period for which an asset is held by an assessee under a gift, the period for which the said asset was held by the previous owner shall be included.

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

22 September 2012 In the case of CIT vs.Manjula J.Shah(2012)204 Taxman 691 Bombay High Court held "that the assessee can avail indexation benefit for the period held by the previous owner also" i.e Indexation benefit should be consider from the year property acquired by the previous owner.

OM SAI SRI SAI JAI JAI SAI

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