Capital gain exemption on gifted property

Dear Amit,

For the purpose of calculating capital gains on gifted property the period of holding includes period of holding of the previous owner and cost of aquisition is of the previous owner.

You can claim exemption u/s 54 and 54 EC provided it is within the limit of 50 lakh for 54EC. 

Indexation can be based on the year father started holding the property.

Thanks

Hi,

1. Transfer of property by way gift from your father is not taxable and subsequently if sell it is taxable in your hands after adjusting any other investment as allowed u/s 54 & 54EC.  You are eligible for exemption U/s 54 & 54EC

2.Indexation is also available to the cost incurred by your father and subsequent cost born by you if holding period is more than 36months.  You eligible for indexation of acquision cost.

This is merely a transfer by inheritance, taxability of LTCG/STCG transferred from your father to you.