Capital Gains-Short/Long Term

Dear Sir, I received gift a building (from father) on 01/08/23, and I sold it on 15/12/23, how treat it as long or short term capital gain. pls...
Replies (16)
Quick Summary
This discussion clarifies how to determine whether a capital gain is short-term or long-term, particularly when dealing with gifted assets like property. The key takeaway is that the holding period starts from the original owner's acquisition date, not when the gift was received. For gifted assets, the original owner's cost of acquisition is used, adjusted for inflation via indexation, with special rules for assets acquired before 2001.

For the calculation of the holding period is counted from the date of your father's ownership, not from when you receive gifted it. and in your question your father holding information is missing.

First know what is capital asset, then transfer . then short term and long term.
Dear Anup sir, I have taken ownership from 01/08/23, and it is a building, so, pls. clarify now.

I want to know about date your father acquired ownership, not the date it was gifted to you. Capital assets such as land, buildings, and house properties are considered long-term capital assets if they have been held by the owner for 24 months or more.

If its a gift among blood relation no tax on transfer
Dear Anoop sir, it acquired by my father before 20 years ago, pls. also clarify date of acquisition cost which I consider.

Your father's cost should be considered your cost of acquisition (COA), and the cost should be adjusted using the COI indexation method.

Yes it's accepted
Dear Anoop Sir, I know that to calculate profit in long term capital gain cost value consider before three years cost value, it is correct, pls..
Cost of accqisition plus improvement plus indexation.
Dear Anoop Sir, I know cost of indexation, only confirm me that I consider acquisition cost before three years cost plus indexation, pls..
Tenure of capital gain short term or long term

Dear sir

According to the Income Tax Act, if assets are received through inheritance/gifted the cost of acquisition is considered to be the same as the original cost at which your father purchased those assets. However, if the assets were acquired before 2001, the cost of acquisition is taken to be the fair market value as of 2001.

Thanks Anoop Sir

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