capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2010 what is the treatment of capital gain on sale residential house property which is acquired by the assessee before 2.5 years of sale by inheritance

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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11 December 2010 If it was acquired by inheritance or by will then, cost of acquisition considered here will be cost to the previous owner..., and i think tenure considered will b 2.5 years and so it will be short term capital gain...... But let some other experts reply tooo.....

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 December 2010 For the purpose of indexation holding period will be 2.5 years whereas for the purpose of holding period for deciding long term or short term the periodof holding would be from the time is was held by the previous owner.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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12 December 2010 Agree with Aditya sir

period of holding (for determining nature of gain ) = 2.5 + holding period of previous owner.

COA- cost of acquisitions by previous owner
indexation available from Date of acquisition by present holder.

refer sec. 49(1)