Capital gain

It will 2004 for Y.

Thanks for response

see pankaj as Mr Y not paid any considerations for that, how can he avail benifit for 2004,

X transfer property as gift deed so cost of Acquistion for Property to Y will be Nil at the timing of selling property whole LTCG will be taxable in hands of Y.

Mr Y can avail the benefit of cost of Indexation only for the Financial Year 2004 - 05. As it is the year on which the property is transfered from the original owner (Mr.X) to the transferee (Mr.Y).

Regards

Ram

what is the treatment if he obtained the property by partition from family

Indexation benefit from year 2004

what is the cost of acquisition

cost of acuqusition will be Nil for Y.........

1.As per Sec 47(iii)  any transfer of a capital asset under a gift   or will or an irrevocable trust : [Provided that this clause shall not apply to transfer under a gift or an irrevocable trust of a capital asset being shares, debentures or warrants allotted by a company directly or indirectly to its employees under  [any Employees’ Stock Option Plan or Scheme of the company offered to such employees in accordance with the guidelines issued by the Central Government in this behalf];]

2.Indexation has to be from 2004 only.COA of previous owner has to be considered while computing capital gains.

Cost of Indexation will be cost of previous owner & will be applied when Y became owner of property i.e 2004-05.