Capital gains

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2015 Please clarify that in the following Case - Whether Capital gains will attract or not ?

CASE:

An assesse got a gift settlement of land from his grand mother on 2007. then he transferred the same land to his father as gift on the year 2012. again the land was settled to assesse by his father as gift on 2014.

Q1. If the land is sold in 2015 then at what rate the capital gains will attract?

Q2. Whether we can index the cost expended towards land improvement?

Q3. Can we avail exemption under capital gains? if so under which section?

Q4. Can we avail tax exemption if we use the land for flat promotion through Joint Venture?

Please guide in this regards, Thank you

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

16 June 2015 Yes capital gain will accrue to assessee if land is sold in 2015. For determination of capital gains cost to the previous owner will be taken which will be cost to grandmother and not father since previous owner has to be a person who has acquired the asset other than gift. Period of holding will also be reckoned from the grandmother's point of view i.e. from 2007.