BENEFIT OF INDEXATION

INDEXATION IS AVAILABEL ,ICA = FMV AS ON 1.4.81 OR COA BY PREVIOUS OWNER WHICHEVER IS HIGHER  X CII OF YEAR OF TRANSFER / CII OF YEAR IN WHICH FIRST HELD BY THE ASSESSEE

Yes, Chintan is Right.
 

 The Assets is LONG TERM. Because When we get Any capital assets in Gift as per section 49(1) of IT ACT holding period is sum of last owner period. So it is a LT Assets.

But plz keep in mind sec 112.may b indexing is not banifical for assessee.

the wording of the section for indexation says that the indexation should be given from the year when the assesse first holds............... there is a decided case law ... forget the case name but wil be page no 80 itr cases....... so u can give indexation from the year 1981

hi

The cost of acquisition will be:

i)FMV of house as on 1.4.1981,or

ii) Cost of Acquisition of previous owner

higher of above.

Also the benefit of indexation will be available to Mr B