N C GOEL (CA) (47 Points)
04 October 2013MR A PURCHASED/BUILD THE HOUSE IN 1975 FOR 4.00 LACS
MUTUATION WAS EFFECTED IN FY 2010-11 AND THE SAID PROP WAS SOLD IN SAME FINANCIAL YEAR BY 3(CHILDREN)INHARITANTS
WHETHER VALUE AS ON 01.04.1981 AS PER VALUATION REPORT ie RS 9.38 LACS CAN BE TAKEN FOR CALCULATION OF LONG TERM CAPITAL GAIN OR VALUE ON THE DATE OF INHERITANCE SHOULD BE TAKEN FOR CALCULATING CAPITAL GAIN.
WHETHER INDEXATION SHOULD BE APPLIED ie COST AS ON 01.04.1981 =9.38X711/100=66.69 LACS
CA Mitesh N Kothari
(9821662799)
(391 Points)
Replied 05 October 2013
Indexation will be allowed from 1981 because in case of inheritance cost of acquisition and date of purchase is taken of previous owner.
Mihir
(Wealth Manager)
(5293 Points)
Replied 05 October 2013
No, the cost of acquisition shall be the market value as on 1.4.1981 and indexation applied thereon.
CAclubindia
