AD-FREE CAclubindia and Daily Mobile Updates. Subscribe Now!

Sale of gifted property

09 January 2024

I had got property as a gift from non relative and paid tax in other source of income as value determined u/s 50c, now when I am selling the property what will be consider as cost of acquisition also from when will indexation start.

Reply
Follow
Share

7 Replies

Sharath chandra (Accountant) (1227 Points)
Replied 10 January 2024

From the day you have received in gift deed.. acquisition cost as per gift deed

sabyasachi mukherjee (27825 Points)
Replied 10 January 2024

Sale of gifted property is sale value less cost of acquisition.

CA Raj Doshi (Practising CA) (8944 Points)
Replied 12 January 2024

Logically, the tax paid to receive that gift should also be treated as cost of acquisition. Not sure of this but logically it should be. Some reading required in this direction.

Ofcourse, Cost of acquisition will be cost to the previous owner and the period of holding will be period held by previous owner plus donee.

Rgds - CA. Raj Doshi - R C D & Co.- Chartered Accountants - Kandivali West - Mumbai

1 Like

Sharath chandra (Accountant) (1227 Points)
Replied 13 January 2024

Raj sir, of tax is paid in such gift received... then ideally date of acquisition should be from the date of gift.

please clarify

1 Like

CA Raj Doshi (Practising CA) (8944 Points)
Replied 13 January 2024

In case of property received as gift, the period of holding is reckoned from the date of its purchase by the acquirer, other than by way of gift. If the property has been originally acquired by non-relative, the period of holding will be reckoned from such purchase date.

sabyasachi mukherjee (27825 Points)
Replied 17 January 2024

Cost of acquisition is the cost to the previous owner.

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 17 January 2024

Originally posted by : Sharath chandra
	Raj sir, of tax is paid in such gift received... then ideally date of acquisition should be from the date of gift. please clarify

No Dear...

If received as gift then it's not calculated from date of gift (or gift deed).

The calculation required from date of previous valued (like donor's purchased date).

Means if the said property given as sale (not as gift) then property value calculated with acquisition. After this the value increased at the time of sale (so it's gifted and calculation required)