Capital gains- zero value property

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This discussion addresses how to account for properties received from the government at zero cost, often through schemes for underprivileged individuals. It explores how to record such assets in an assessee's books and the crucial question of how to determine the cost of acquisition when the property is eventually sold. The core issue is whether the capital gains calculation should use a zero cost basis.

swetha

swetha (Querist)

25 March 2022 Assessee received property from government under Dhanapatra ( for under previledged people ) and zero cost . How to record the property value in books of assessee and how to calculate capital gains in case of sale of such property

CA Puja Sharma

CA Puja Sharma (Expert)

25 March 2022 In my opinion, the cost of the property to be recorded in the books will be Nil.

swetha

swetha (Querist)

25 March 2022 If they sell the property whether value to be taken for cost of acquisition will be zero?

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