Capital gain on inherited asset

1.Period of Holding: Oct. 1998-Jan.2014(Long Term Capital Asset)

2.Comutation of Capital gain(Sec.45)

Sale Consideration:             Stamp Duty Value(Sec. 50C)

Indexed Cost of Acquisition:20000*Cost inflation index of F.Y.13-14/Cost inflation index of F.Y.1998-1999(Refer Case Law of CIT Vs. Manjula J. Shah)

Long Term Capital Gain :xxxxxxxxxx

No exemption will be available regrading Cap. gain (Refer Provision of Sec.54)

3. Prima Facie u've to sell the Property at S.D.V..Howver you can challange the S.D.V.(Please Refer The Provisions of Sec. 50C).

HI,

Thanks for the reply. I guess the reason why no deduction will be allowed is because "I bought the property more than one financial year before". Is that right ?

If so, then I need to mention that though the property was bought during Feb 2012, yet it was acquired thru bank loan. I will pay of the bank loan after I receive the proceeds from the other property.

Let me know if the above situation changes the scenario.

Thanks

 

 

1). The transfer amounts long-term capital asset transfer u/s49(1) as the assessee got property under gift which is now being transferd. The calculation of period of holding starts from purchasing date of the asset by the donor in this case. 2). Considering the sale of property @ 17lakhs, The calculation of the LTC transfer will be net sale consideration(After deducting all sales expenses) i.e. 1700k minus INDEXED COST Of ACQUISITION {i.e. (20k) * [index of the year of sale(here 2014 jan index is,presently not known)] / [161(index of the f.y. 1988-89)]} will be taxable amount of Long-term capital gain if the result is positive, liable for tax @ 20% flat rate. 3).If the sale consideration exceeds the stamp duty value then the consideration received itself is treated as sale consideration OR if the asset is sold at less than stamp duty value then, stamp duty value itself will be treated as sale consideration.u/s 50c..

Yes, for the same reason the assessee can't claim exemption u/s 54.. And the answer for 2nd query is NO. The assessee if acquires house property from loan can claim deduction u/s24(b) for the interest amount paid by him on such loan. But can't claim exemption from capital gain. However, PLEASE WAIT FOR THE EXPERTS' QUALIFIED ANALYSIS..