The Assessee (settlee / donee) has acquired a property in 2011 through a ‘gift deed’ gifted by his mother (settlor / donor) i.e., the previous owner. The settlor has acquired the said property through her ancestral property and by virtue of continuous and uninterrupted possession of the said property since several years.
As per 49(1). COA of the assessee can be taken as COA to the previous owner in case of a gift. However, the year and cost of acquisition of the property by the previous owner i.e., the mother was not given in the deed. How do we proceed.
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Gift deed property vs sale of such property
Replies (6)
As it is ancestral property, take cost as FMV based on circle rate as of 01.04.2001.
Use FMV as on 01.04.2001
the assesse has some property which is taken as the fair market value of the property.
Sir. in my case the gift deed is registered where in the value of the property is arrived and accordingly the stamp duty is paid , so can I take that value as the cost of acquisition?.
If you want to take that as COA, will be acceptable, but you will be looser, as the indexation benefit would reduce. See the Indexes...
2001 -- 100
2011- - 184
2021 -- 317.
Almost 85% more tax liability.
Instead of FMV use cost of acquisition and then indexed it
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