PLS HELP ME ON CAPITAL GAINS

Yeah assessee can get exemption by investing the amount received from sale of property into house property or investing in Bonds if investment done within the limit specified...

As far as cost of property is concerned, it is NIL and hence how can indexation be done....

Hi, exemption u/s 54 (for purchasing HP) or u/s 54 EC (for the bonds) are available with assessee....

While, the cost here will be considered as COST TO THE OWNER, i.e cost to the landlord (sec 47 or 49 - didnt remember) and for indexation year base year will be 1986 or 1998 (year in which present owner acquired property - not that sure about of the years), but it should be 1998.....

I read it now, then the rent reciept's total can be considered as cost, as its the "COST OF ACQUISTION", that means, the cost to acquire the property....

Hi Dhiraj.......where did u read the Cost of Property provision (total of Rent Receipts is equal to Cost of Property) ??

in my opinion cost of acquisition in that case is nill. so capital gain here is rs.1500000.

yes assessee can get exemption u/s 54 & 54EC.

their is no cost of acquisition so indexation is not applicable.

i agree with reetika point supra that COA to be taken to be nil since what is paid was paid as a rent .

Further assessee became the owner of the property only in 1998 . However if any amount is paid in the redevelopment process then that can be taken  to be the cost of acquisition and INDEXATION WILL BE ALLOWED.

As far as deduction u/s 54 and 54EC is concerned assesse will be entitled for the same.

In my view the tenant has paid amount on Pagdi System which is treated as  COA of property.

Indexation will be allowed from year 98 onwards due to ownership rights is transferred in 1998.

Capital Gain which arises will be allowed to take benefit u/s 54F and 54EC

 rent receipts total will be deemed cost of acquisition'''''

I agree with Reetika .

The cost should be considered as Nil and then claim deduction u/s 54 if the conditions are satisfied.