Capital Gains

Hi Please clarify

1. An asset is purchased by the asseessee around 20 years back and the same is not recorded in books. What is the cost of acquisition in this case if the asset is sold now?

2. X has purchased a building and consideration is paid by Y around 15 years back. No amount is incurred by the asseessee. What is the cost of acquistion on the sale of asset. ?

3. Can AO deny the claim for Cost of Acquisition if the asset is purchased more than 10 years ago and the asset is not recorded in books.

 

Regards

Replies (8)

Hi

1. The Cost of acquisition in this case will be the fair market value at the time of purchase.

2. COA will be the amount paid by Y

3. There is no such provision relating to AO denying the claim of COA.

Lets see what others have to answer.......

I THNK MY FRIEND POONAM IS RITE...

 

Yup Poonam is right...

One more additions sir...In the first case if the asset was originally acquired before 1/4/81 u can consider the fair value as on the date of purchase or as on 1/4/81 which ever is higher as cost of acquisition.. and if ur talking abt acquisition 20 years from now this doesnt have any relevance too...

Originally posted by :Hareesh H Sharma
" Yup Poonam is right...
One more additions sir...In the first case if the asset was originally acquired before 1/4/81 u can consider the fair value as on the date of purchase or as on 1/4/81 which ever is higher as cost of acquisition.. and if ur talking abt acquisition 20 years from now this doesnt have any relevance too...
"

"u can consider the fair value as on the date of purchase or as on 1/4/81 which ever is higher as cost of acquisition..".......

Its COA on the date of purchase or FMV as on 1/4/81 which ever date is later for the first case... We can explain that the asset is purchased through drawings if the money is paid out of cash...

 

For the Second Case it is Cost to the Previous Owner...

 

For the Third Case Poonam is right..

 

yes S. ramkumar is right

If that building is purchased by x aftr 30/9/09 and nothing is paid by him,and if the value of building is more than 50000,it will be taxable in hands of x under head income from other sources..And cost of acquisation will be the value of building which was taxable..
If that building is purchased by x aftr 30/9/09 and nothing is paid by him,and if the value of building is more than 50000,it will be taxable in hands of x under head income from other sources..And cost of acquisation will be the value of building which was taxable..
My last reply was for 2nd case.. And if the value of building is less than 50000 if transferred after 30/09/2009 or any of any value but transfered before the above date cost of aq. Wil b same as in the hand of previous owner.

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