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Cpital gain

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(Querist)
25 May 2015 My wife purchased a property at the year 1998 for 14 Lakhs. Now she gifted to me (husband) may 2015 with no cost and valvuation is 1.5 Crores. Presently also the same valvuation. If I sell it now for same price 1.5 Crores , any capital gain will attract me. If so, how and the tax, pl explian me with details
thank you
ganesh.
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CS Advocate Abhishek Goyal

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CS Advocate Abhishek Goyal (Expert)
26 May 2015 There will be long term capital gains since in case of gift period of holding is taken from the previous owner. If you are referring to valuation as section 50C value than sale consideration will be taken as Rs. 1.5 crore out of which benefit of indexed cost of acquisition will be given which will be calculated on Rs. 14 lakhs i.e. cost to previous owner but regarding whether the index of year of purchase by previous owner or index of year in which property was first acquired by the assessee is to be applied is a controversial one in view of explanation (iii) to section 48. There are conflicting court judgments. One can take the help of Bombay High Court judgment in the case of CIT Vs Manjula J shah. Also take note that the Supreme Court has held that in case of gifted properties capital gains will be clubbed in the hands of the donor. [1968] 68 ITR 503.
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CS Advocate Abhishek Goyal

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CS Advocate Abhishek Goyal (Expert)
26 May 2015 There will be long term capital gains since in case of gift period of holding is taken from the previous owner. If you are referring to valuation as section 50C value than sale consideration will be taken as Rs. 1.5 crore out of which benefit of indexed cost of acquisition will be given which will be calculated on Rs. 14 lakhs i.e. cost to previous owner but regarding whether the index of year of purchase by previous owner or index of year in which property was first acquired by the assessee is to be applied is a controversial one in view of explanation (iii) to section 48. There are conflicting court judgments. One can take the help of Bombay High Court judgment in the case of CIT Vs Manjula J shah. Also take note that the Supreme Court has held that in case of gifted properties capital gains will be clubbed in the hands of the donor. [1968] 68 ITR 503.
Profile Image

CS Advocate Abhishek Goyal

Profile Image

CS Advocate Abhishek Goyal (Expert)
26 May 2015 There will be long term capital gains since in case of gift period of holding is taken from the previous owner. If you are referring to valuation as section 50C value than sale consideration will be taken as Rs. 1.5 crore out of which benefit of indexed cost of acquisition will be given which will be calculated on Rs. 14 lakhs i.e. cost to previous owner but regarding whether the index of year of purchase by previous owner or index of year in which property was first acquired by the assessee is to be applied is a controversial one in view of explanation (iii) to section 48. There are conflicting court judgments. One can take the help of Bombay High Court judgment in the case of CIT Vs Manjula J shah. Also take note that the Supreme Court has held that in case of gifted properties capital gains will be clubbed in the hands of the donor. [1968] 68 ITR 503.
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