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Confusion in determining cost of acquisition

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vikas (Querist)
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21 January 2013 hello evryone,
i am confused abt sec 49 which deals with the deermination of cost of acquisition in relation to a long term capital asset acquired by the assessee by way of gift,inheritance etc. I hv read that the cost should be taken as the cost of the previous owner.
but my point is that if the prvs ownr hs purchased the asset on 01.01.1979 for Rs. 50000 and FMV on 1.4.81 was 100,000. The asset trf to assessee on 11.11.2003 and the asseessee sold it during 01.02.2012 for Rs. 20 lakhs. in this case whether FMV is taken as COA,or the original cost and from which year he should be provided indexation benefit. From 1981 or from 2003 ??????

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Guest (Expert)

21 January 2013 So far as COA is concerned assessee is having an option to adopt cost of acquisition or FMV as on 01-04-1981 whichever is beneficial to Assessee. And indexation shall be available from the year in which assessee gets possession of the asset.

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