Effect of settlement deed/release deed given by sibilings

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This query is : Resolved

CA Yasaswy Sarma Veluri (Querist)

22 July 2014 My Clients father expired in 1980's leaving behind a commercial property acquired by him in 1960's to his six living children without any will.

In the year 2012 all other 5 siblings have given release deed/settlement deed with out any consideration as love and affection to my client.

With this EC and Patta have given individually on my clients name

My client has now in 2014 sold this property.

Can he take 1980 valuation as Cost of Acquisition?

Can this be considered as long term capital gain considering it as inheritance?

and in case this is a long term capital gain, can we take indexation from the time his father has expired?

or please suggest alternatives.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

22 July 2014 pls refer to sec 49 of the act,

if the property becomes the property of the assessee by succession, inheritance , devolution

then cost of aquisition of the assets shall be deemed to be the cost for which the previous owner of the property acquied it.
in ur case, value as on 1.4,.1981 shall be the cost of aqusition
yes it will be LTCG
YES, HE CAN TAKE INDEXATION FROM THE 1.4.1981

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