Capital gain

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

13 May 2012 Is a Property transfered from assesse's Grand-ma is taxable for the assesse???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

14 May 2012 Property transferred by a grandmother to the assessee is not taxable in the hands of the assessee.

It will also not be taxable in the hands of the grandmother if the transfer is a gift or in pursuance of a will.

When the assessee sells the property, then capital gain will be applicable in the hands of the assessee.

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2012 Then, on sale of such property, what will be its purchase value?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

14 May 2012 The purchase cost shall be the price at which the property was purchased by the grandmother.

Mihir Doshi

Mihir Doshi (Expert)
Follow

14 May 2012 Agree with Expert.

Also take into account that when you are going to sell the property then if the property is long term capital asset then the year of indexation will be the year when the property is possessed by you though you can take the cost of property of previous owner (Grandmother) or value of 1981 whichever is higher.

Thanks
Mihir Doshi

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now