Mr. A got a property through his father's will made in 1984. Further, a family settlement was
executed in 1996 among Mr. A's family members in which the property was formally declared as
Mr. A's property.
Mr. A sold the property in FY 2014-15.
Query : Can Mr. A get the benefit of cost indexation? Since it was an inherited property there
was no cost incurred by Mr. A. Also, cost of acquisition is not available for the previous
owner (Mr. A's father). Which year should be considered as the year of acquisition of the property for Mr. A.
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Cgt exemption for gifted property
Replies (1)
first check whether the concerned asset is capital asset or not.... if its is capital asset then check whether mr.A's father bought the property before 1.4.1981.. if so then thae cost of acquisition will be cost or fair market value whichever is higher.. in that case if cost is not known take fair market value as on 1.4.1981 as cost of acquisition.. indexation benefit is available..since he originally acquired it through will in 1984 i think indexation is to be done using 1984 index as base.. but anyhow clarify the indexation year with any other expert..
hope u might have got some useful info here..
:) :)
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