Query Regarding Capital Gains Computation and Cost of Acquisition under Section 49 of the Income Tax

To compute capital gains for Mrs. Y, you'll need to determine the cost of acquisition for her 50% share.

Step 1: Understanding Section 49 of the Income Tax Act Section 49 deals with the cost of acquisition in cases of gift, will, or inheritance.

The explanation under sub-section (1) refers to the "last previous owner," which, in this case, is Mr. Y.

Step 2: Determining the Cost of Acquisition for Mrs. Y Since Mrs. Y acquired her share as a gift from Mr. Y, she'll consider Mr. Y's cost of acquisition for her 50% share.

However, Mr. Y had acquired the property as a gift from his father, Mr. X.

 Step 3: Considering the Relationship Between Transferors Given the relationship between Mr. X (father) and Mr. Y (son), and subsequently between Mr. Y and Mrs. Y, the cost of acquisition for Mrs. Y will be the cost of acquisition of Mr. X, as Mr. Y had not incurred any cost while acquiring the property from his father. The final answer is: $\boxed{Cost of acquisition of Mr. X}$

To compute capital gains for Mrs. Y, you'll need to determine the cost of acquisition for her 50% share.

Step 1: Understanding Section 49 of the Income Tax Act Section 49 deals with the cost of acquisition in cases of gift, will, or inheritance.

The explanation under sub-section (1) refers to the "last previous owner," which, in this case, is Mr. Y.

Step 2: Determining the Cost of Acquisition for Mrs. Y Since Mrs. Y acquired her share as a gift from Mr. Y, she'll consider Mr. Y's cost of acquisition for her 50% share.

However, Mr. Y had acquired the property as a gift from his father, Mr. X.

 Step 3: Considering the Relationship Between Transferors Given the relationship between Mr. X (father) and Mr. Y (son), and subsequently between Mr. Y and Mrs. Y, the cost of acquisition for Mrs. Y will be the cost of acquisition of Mr. X, as Mr. Y had not incurred any cost while acquiring the property from his father. The final answer is: $\boxed{Cost of acquisition of Mr. X}$

The long term capital gain would be 100% over the son, due to clubbing provision.

So, Consider the cost for Mr. X as cost of acquisition of his father.

Thank you Rama chary Rachakonda Sir for your detailed response.

Dhirajlal Rambhia Sir since this is a house property the clubbing provisions will still be applicable?

Income of individual to include income of spouse, minor child, etc.

Section 64 IT act. (1) In computing the total income of any individual, there shall be included all such income as arises directly or indirectly—

 (i) [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]

(ii) to the spouse of such individual by way of salary, commission, fees or any other form of remuneration whether in cash or in kind from a concern in which such individual has a substantial interest :

Provided that nothing in this clause shall apply in relation to any income arising to the spouse where the spouse possesses technical or professional qualifications and the income is solely attributable to the application of his or her technical or professional knowledge and experience ;

(iii) [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]

(iv) subject to the provisions of clause (i) of section 27, to the spouse of such individual from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration or in connection with an agreement to live apart;   ,,,,,,