cost of acquisition

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kalpana (Querist)
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24 January 2010 what will be the cost of acquisition in case of relinqueshment of asset?
Case :- property bought in 1979 by Mr. X. Mr. X died n property got transgered to his children 3 daughters & 1 son. 1 daughter relinquished her share in property and given to his brother. property being sold out. 2 points to ask-
1) capital gain from date of acquisition to date of sale
2) capital gain from date of relinquishment of asset by daughter to date of sale.

Please reply......

Barun Kumar Ghosh

Barun Kumar Ghosh (Expert)
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24 January 2010 Kindly clarify the difference between two questions.Will the brother sell the share of her sister after it is relinquished in his favour?

kalpana

kalpana (Querist)
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25 January 2010 yes brother sold out the whole property including share of her sister which was relinqueshed.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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25 January 2010 you are right .

ramesh

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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25 January 2010 I think this will fall under sec 49(1),i.e., Previous Owner Case.

Here, because property divided into 4 persons and if ratio is not given then this should be 25% each.
Means, If Cost of Acquistion is Rs. 1,00,000 for the Father then COA will be Rs. 25,000 per person.

Now, because sister relinquised her title therefore, it should also covered in section 49(1), means without any CONSIDERATION she transferred his property to her brother.
Therefore, no taxability in the hands of Sister.
However, when brother sell this property then COA of the property will be Rs. 25,000 + Rs. 25,000 = Rs. 50,000.

However, if sister charged anything then according to that amount there will be capital gain in the hands of Sister.

Regards!!!
Dinesh S. Adhikari

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