Regarding Indexation of Gifted Property

A father gifted a share of land to his daughter. For this A Gift deed was executed of Rs.806000/- in FY 2018-19.

Same was purchased by his father of Rs.357840/- in FY 2014-15.

Now which value to be considered for Indexation if there shall be a sale of above property in FY 2023-24?

Is it Rs. 806000/- (As per gift deed)
or Rs. 357840/- being the original price of the assets?
Replies (2)
Quick Summary
This discussion concerns the correct cost basis for calculating capital gains tax on gifted property. When a father gifted land to his daughter in FY 2018-19 for £806,000, the question arises whether the indexation should be based on this gift deed value or the father's original purchase price of £357,840 in FY 2014-15. The prevailing view suggests the original cost price is the relevant figure for indexation purposes, especially considering potential exemptions under Section 56(x)(2) for blood relations.

Rs. 3,57,840/- being the original price of the assets...

Blood relation exemption of Sec 56(x) (2).

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