Capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2012 An assessee was gifted property from her mother. The gift deed was registered and the property was also registered in her name. Now while selling the property can she claim deduction for the expenses on registration of gift deed and registering the property in her name. Pls help with examples/ sectoions/ case laws.Thanks

Pankaj Gupta

Pankaj Gupta (Expert)
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07 October 2012 If mother gifted the property to the assessee than how can she sell the property and claim expenses ??
Pls specify correctly that who sold and to whom?

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2012 The property is sold by the daughter to a third party. The Cost of acquisition to the daughter will be cost to mother or 1981 value. However, when the mother gifted the property to daughter, the daughter got the gift deed registered and also got the property registered ion her name. The daughter has now sold the property my query is that can the daughter claim deduction the gift deed registration charges and charges for getting the property registered in her name alnog with indexed cost of acqisition

Pankaj Gupta

Pankaj Gupta (Expert)
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08 October 2012 To the daughter, the deduction will be given only of the indexed cost of acquisition of mother and of indexed cost of improvement by mother and daughter. Registration expense and deed expense can not be called as cost of improvement, and therefore not eligible for deduction.

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