Capital gain on gifted property

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This query is : Resolved

PRANAY JAIN (Querist)

15 September 2014 My father want to transfer a residential property to me through gift deed.So when i sell this gifted property whether i have to pay capital gain tax on whole receipt or on the difference between the cost at which my father bought this property and selling price.
And also if i have to pay capital gain tax on only the difference amount whether indexing would be allowed or not.

Nikhil Kaushik

Nikhil Kaushik (Expert)

16 September 2014 1. Cost as incurred by your father to buy this asset will be the cost to you also

2. indexation shall be allowed

Prof. Bajaj

Prof. Bajaj (Expert)

18 September 2014 I agree with Nikhil Sir.

Whether to go for indexation or not, will depend on which way you have a higher tax liability.

But the answer to your question is, indexing would be allowed.

Nikhil Kaushik

Nikhil Kaushik (Expert)

18 September 2014 Dear Bajaj Sir,

I am way too junior to be called Sir by you :)

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