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Transfer of property
Mr. A has brought the land for a cost of Rs.1 Lakhs in June 2002, which includes cost of registration. Mr. A gifts the land to charitable trust registered in Kolkata of which branch Jhunjhunu Rajasthan in December 2016 the land is situated in Jhunjhunu of which the SRO value is Rs.4 Lakhs.
1. Whether charitable trust accounts the cost of land at Rs.1 Lakhs or Rs.4 Lakhs?
2. What is the correct way of accounting the land?
It is understood that if the charitable trust sells the land, the value of shall be taken of Rs.1 Lakhs duly indexed till 2016 and the gains are accounted accordingly.
Replies (2)
Incase of gifts received the cost of gift to the receiver shall be the original cost of the payer.
In this case, cost of land to the charitable trust shall be the cost of Mr. A i.e Rs 1 Lacs.
It should be accounted for at Rs.100000/- & same is used for calculation of capital gain.
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