I am the beneficiary of the will of my uncle. As per the will, the shares held by him are bequethed to me. The shares are purchased in 2010, 2011. The will is to be executed by the executors shortly. If the shares are sold immediately after the execution of the will,
1. What will be the cost of aquisition. Is it 'NIL'? However as per sectiion 47 of the income tax act, property acquired by gift or will is not regarded as transfer and hence the cost of aquisition is the original cost (I suppose).
2. What will be regarded as date of aquisition ? Is it the date of original purchase by my uncle or the date of release letter of the executor.
3. I understand that it will be Long term gains if the date of acquisation is the original date and hence no tax liability shall arise.
I will be obliged if anybody clarifies in the matter.
I have already gone through the text of Section 43, 45, 47 and 49 and 54E etc (or the relevant sections of the income tax act .... the numbers may have been wrong) but was unable to arrive at any concrete decision in this regard)
CAclubindia
