Capital Gain on sale of gifted property

Dear All,

My mother purchased a flat in October.12 for Rs.3,20,000/- ( Stamp valuation Rs.18,00,000/-), then she gifted me the same in March.13. Now I sold the flat in November.20 for Rs.17,00,000/- ( Stamp valuation Rs.22,00,000/-). In this case what is my sell value, cost of acquisition & capital gain amount.

Thank You

SANTANU

Replies (4)
Quick Summary
This discussion clarifies capital gains tax on a gifted property. The original purchase price was significantly lower than the stamp duty valuation at the time of gifting. The key question is whether the cost of acquisition for capital gains calculation should be the original purchase price or the stamp duty valuation at the time of the gift. The consensus leans towards using the original purchase price, adjusted for indexation.

Sell value 22 lakhs, cost of acquisition 18 lakhs, plus indexation. The figures vary very high.
Sale value will be 2200000 rupees
cost of acquisition will be 320000 rupees
capital gain should be calculated on the basis of indexation

As the property is govt. subsidised the cost price is low, similar project in same area is Rs.12,00,000/- aprox thats why figure is very high.

But the question is what is the cost of aquisition is it Rs.3,20,000/- or Rs.18,00,000/- ?

 

As it is Govt Subsidised, cost will be 320000/-

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