Capital gain on gifted property

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PRANAY JAIN (Querist)
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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)
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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)
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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)
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18 September 2014 Dear Bajaj Sir,

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

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