An assessee acquired a property through a will in F.Y. 2011-12, which was acquired by the previous owner before 1981 and the same property was sold by the assessee in the F.Y. 2013-14. What cost inflation index will be taken by the assessee for computing indexed cost of acquisition, whether it will be 100 (for 1981-82) or it will be 785 (2011-12) ?
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Capital gains tax
Replies (9)
The cost to the assessee will be the cost of the previous owner. So, CII will be 100
Consider CII of 2011-12 which is 785 as per relevant section of Income Tax Act 1961.
Bombay High Court in the case of CIT v. Manjula J. Shah (2013) 355 ITR 474
whenever certain assets are sold and particularly when such assets have been received by way of gift or through Will or by succession or by inheritance, then the cost of acquisition of the asset will be deemed to be the cost for which the previous owner of the property acquired it as increased by the Cost Inflation Index of that year in which the previous owner originally acquired the property.
When a property is acquired by gift or inheritance , the cost inflation index will be the CII for the previous owner . In any other case the CII will be taken as the year when the present owner acquired the property.
Assessee was got by way gift .it wii be taken as per 2011 .-2012 indexation numer as taken.but not get byway of gift as taken indexation numer is 100
Indexation of previous owner will be considered for capital gain computation.
cii will be taken as 100
If any property is purchased before 1981 the CII must be 100
I agree with Miss Madhavi Pandit, cost to assessee in your case will be the cost of previous owner and the cost inflation index of the year in which previous owner acquired the asset would be applied.
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