When Capital Assests acquired in modes specified of u/s 49(1) what is the indexation applicable ? is it for the first year in which the capital assests was held by previous owner or the year in which capital assets was first held by assessee himself.
Indexatio shud be taken for teh eyar when the previous owner purchaed the asset & not when the current owner possessed the asset.
Hello Sidh
Indexation Shall be from the year in which previous owner acquired the capital asset. This view has been affirmed by delhi high court as well as bombay high court. In one of my earlier posts I discussed about this in detail. You may check this link for further details of the case law- /forum/capital-gains-very-important-issue-for-nov-12-216069.asp#.UDTwKallQxE
Best Regards
Ashish Pathak
CMNITY HIRE
New Delhi
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