Deaar All,
I need your suggestions in the respective matter.
one of my client has sold a property which was transferred in his name by his father through gift. The transfer of property was supported by paying stamp duty.
My question is whether the period of acquisition of his father is also considered for computing his tax liability or not??
In my opinion, the stamp duty paid for the transfer of title is only for giving him the right to sell and for acquiring the property. The period of holding of his father should also be considered and COA of his father should be taken for the purpose of computing Capital Gains in his hands.
If we consider only the stamp duty paid by the assessee, he is liable to pay huge tax as cost of acquisition in his hands is very nominal amount and as far as the period of holding is concerned, he sold the property within 6 months of the date of transfer of title.
Please guide.
CA Mukul Mittal
CAclubindia
