capital gain

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Subhashchandra (Querist)
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21 July 2010 right from the section 54 TO 54F it is being said that the so called purchased asset cannot be transfered with in a period of 3Years from the date of its purchase.
then what if such is gifted to some person. is the exemption will be withdrawn?
please guide me in this regard.
{gift is not a transfer U/S 47}

DR GAURAV GUPTA FCA, FCS, LL.B

DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
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21 July 2010 gift is not transfer hence exemption will not be withdrawn

Saurabh Aggarwal

Saurabh Aggarwal (Expert)
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22 July 2010 such exemption will be withdrawn if the party you are making the gift transfers it as per Section 2(47) within 3 years.

For counting 3 years, the period you held the asset shall also be counted.

If the asset is sold as stated above, the captial gains which were exempted u/s section 54 shall be reduced from the cost of the asset and accordingly would be taxable in the hands of the party you have gifted the asset.

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