hi
Mr. X inherited a property(shop) in 1982 , but he got only 1/6th share in that property at that time becoz there were five brothers of x also.
but in 2007,some how 4 brothers agreed to surrender their share in the name of two brothers ,
hence ,as of now, mr. X is having 50% right in that property.
how he will get the benefit of indexation?
and will he get any deduction if he paid (in cash) for the acquisition of 50% share?
Dear Abhishek, has Mr.X sold the property for attracting Capital Gain on the same?
yes sir,its absolutely for capital gain
Dear Abhishek,
I think in the present case the brothers who have surrendered their share in favour of remaining Bropthers is by way of "GIFT"
So, Indexation will be done from the date the asset was purchased by the previous owner (I:e FATHER)
Explanation to Sec 49(1) -In this sub-section the expression “previous owner of the property” in relation to any capital asset owned by an assessee means the last previous owner of the capital asset who acquired it by a mode of acquisition other than that referred to in clause (i) or clause (ii) or clause (iii) 4[or clause (iv)] of this 5[sub-section].
Amir is absolutely right..
You can get indexation from the date of purchase of asset by father.
n Also he cannot get deduction of payment made to brothers. If he avails the benefit of the same, it will not be regarded as gift n computation will change accordingly.
CAclubindia
