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capital gain cost to previous owner

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kiran (Querist)
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04 March 2011 a site was registered infavour of son by a father as gift when its market value was 180000/- in 1995.. in 2006 above site was sold by son...... site was purchased by father for 10000/- In this for indexation what will be the cost of acquisition in the hands of son

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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04 March 2011 As per section 49(1) of the I.T.Act, the cost to the previous owner is deemed to be the cost of acquisition where capital assets become the property under Gift.

The cost of father is the cost of acquisition

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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04 March 2011 To supplement sunil ji, if father purchasd the property before 1/4/1981, the fair market value as on 1/4/1981 will be the cost to the son.

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