Vinod Gupta Module VS ICAI suggested
Question-X had taken a loan under registered mortgage deed dated 16-07-00 against the house, which
was purchased by him on 26-03-81 for Rs.5 lakhs. The said property was inherited by his son
`A' under will who for obtaining a clear title thereof had paid the outstanding amount of loan on
12-02-03 of Rs.15 lakhs. The said house property was sold by `A' on 16-03-03 for Rs.50
lakhs. State with reasons the amount chargeable to capital gains for A.Y. 2003-04
Solution-In ICAI Suggested
Sale consideration of house property 50,00,000
Less:
Indexed cost of acquisition (see Note below)
(i) Cost to previous owner – no indexation is given on the
assumption that the asset was sold in the same year in
which it was inherited as per Will.
5,00,000
(ii) Loan amount paid by Mr. A
(Benefit of CII not available on the assumption that the loan
amount was paid in the year of sale) 15,00,000 20,00,000
Capital gains 30,00,000
Note: Since the property was acquired by Mr. A through inheritance, the cost of acquisition to
A will be cost to the previous owner. However, indexation will be from the year in which the
assessee i.e. ‘A’ in this case, first held the asset. It has been assumed that the property was
inherited by ‘A’ and loan was paid off in the same year and was sold during the previous year
2009-10.
in VINOD GUPTA module it is given that CII FOR 1-4-81 should be taken i.e.,100..which logically seems correct coz when for period of holding we use previous owner time then why CII should not be considered for 81 then for when last owner first held?
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