yes.. deduction can be taken..

NO you cannot take deduction

Agree with Mohit

i not agree with mohit and rahul because of the following two points:

1. the rental income earned from house wich is pur. in his wife name is clubed in his income as per sec. 60 of income tax act. income is clubed means the house is deemed to the owner of transferor.

2. properties in spouse name: assesee is entiltled to exemption u/s. 54 even if the new house property is aquired in the name of spouse, which was assessed in the hands of the assessee. [ V. Natarajan 287 ITR 271 (mad.) ]

Hello,     my mother is going to sell a house in sringeri for Rs 30 lacs in december 2010, which she had inherited from her mother in 1996 after her mother died throgh will. and  the said property was transfered from her husband somewhere in 1950. this  property is 150 yrs old.  my mother  is  thinking of gifting  the entire amount to her children i.e me, brother and sister.

How do we calculate the Cost of acquisition of this house property? Does she have to invest that amount in another house property just to avoid tax  and  then gift the property to her children?  I want to know  how to calculate  the capital gain in this regard?  what will be the tax payable  if the entire amount is not invested in new property? please help me regarding this topic at the earliest.(fair market value as on 1981 was Rs2,24,000/-(140*20*Rs80).

https://taxguru.in/income-tax-case-laws/in-case-of-gifted-assets-indexation-benefit-is-available-from-the-year-of-acquisition-of-the-previous-owner.html

hi go through this link..