INDEXATION OF CAPITAL ASSETS

A GIFTED HOUSE TO HIS SON B WHICH HE WAS PURCHASED IN 1982 IN SEPTEMBER 2008. FOR RS. 50000.B SOLD THIS HOUSE TO C FOR 5000000 IN DECEMBER 2008.BUT ONCE A HAS RECEIVED RS.100000/- IN 1983 AS ADVANCE AGAINST AGREEMENT TO SELL BUT DEAL NOT MATUARED & ADVANCE IS FORFIETED.NOW MY QUESTIONS ARE FOLLOWING:-

A) WHETHER NO INDEXTION BENEFIT ARE AVAILABLE TO B ON SALES IN SUCH CASE.

B) WHETHER THIS CAPITAL GAIN IS STCG OR LTCG

C) WHICH IS THE COST OF ACQUISATION FOR B FOR CALCULATING CAPITAL GAIN.

Replies (2)

A GIFTED HOUSE TO HIS SON B WHICH HE WAS PURCHASED IN 1982 IN SEPTEMBER 2008. FOR RS. 50000.B SOLD THIS HOUSE TO C FOR 5000000 IN DECEMBER 2008.BUT ONCE A HAS RECEIVED RS.100000/- IN 1983 AS ADVANCE AGAINST AGREEMENT TO SELL BUT DEAL NOT MATUARED & ADVANCE IS FORFIETED.NOW MY QUESTIONS ARE FOLLOWING:-

A) WHETHER NO INDEXTION BENEFIT ARE AVAILABLE TO B ON SALES IN SUCH CASE.

B) WHETHER THIS CAPITAL GAIN IS STCG OR LTCG

C) WHICH IS THE COST OF ACQUISATION FOR B FOR CALCULATING CAPITAL GAIN.

 

Indexation will be of no effect since the CII is 582 for the year in which the assets was first held by B and the year in which it was sold.

It is a Long term Capital Gain

Cost of Acquisaiton is 50,000 less 1,00,000 received against the non performed contract....

Please reply if i am wrong

please Correct me .. if I am wrong

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details