Long term capital gains

hi bhavna...it is advisable for the family members to prepare an MOU explaining share in property....n....for COA ....the COA in case of inheritence is 0 for recipient hence the cost in the gands for original owner will b taken i.e. if the property by the father if was purchased bfore 1-4-81 then the valuation shall b done and according the indexed cost can b calculated n thrn divided into the share of the members...same would apply in case of improvement cost...

hope i have clarified the doubts...

COA will be previous owner's cost and when this flat want to sell then for indexation index cost will be 100. u have a option for CoA that cost of previous owner OR cost on 01/04/1981 whichever is higher.

Thanks for thr response.I would further like tu konw that in my case thre are two cost involved

COA in the hands of grand father ie 1-4-1980

and secondly cost  of relingushment in the hands of  father of his share to the developer for building the flat for my client.Can I take a notional cost of similar flat in the same building as cost of improvement /COA  ise

Please advise

 

Thanks

 

CA Bhavana Asthana

already the ans is given for COA as for value in 1980 relinquishment exp needs more clarification...as to why incurred...

Hi Vikas

The property of the grand father was converted into flats through the development. Suppose there agreement is  50:50 basis. Father is religuishing the 50% land  as a consideration for construction of  the 4 flats . Out of which my client has received the flat which he is selling.

 

Now the point is there is change in the property  transfered from gf to father. Can this be taken as Cost of improvement. ? what should be the valuation? Do we have any citation in such case?

 

Please discuss

Thanks

CA Bhavana Asthana