Sale of property

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sanjay (Querist)

12 June 2011 sir and friends
I am an accountant. My client is an individual has recieved a property from his father on will in the year 2007. He has sold that property in the m/o June 2010 and revieved the consideration of Rs420000/- as per sale agreement. I know only the sale proceed. Now my point is that:
1. what will be the cost of acquisition?
2. How to calculate the indexation cost?
3. He is taxed at what rate?

Secondly, he has purchased his own property in his wife's name and made the payment of stamp duty and registration fee from their joint account. Who will be able to claim the payment?
Kindly advise on both points.
thanks and regards
sanjay

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

12 June 2011 1. what will be the cost of acquisition?

Sir, Since this cost pertains to past, you have to obtain this information from your client. He may find it out easily by searching the old property papers or from his father's IT Record.

2. How to calculate the indexation cost?

Again, you have to specify, at least the month of 2007, in which the property transferred through will.

3. Tax on LTCG is 20%.

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