Search Results For: cost of acquisition


QUERY: Assessee along with other family persons had inherited a row house from his father during 2008. Row House was originally constructed in 1953. During 2009 said row house was demolished and residential building was constructed by all the legal heirs. In the building assessee was entitled for 2 flats. Building construction was completed in 2012 and immediately on completion assessee had sold one of the two houses allotted to him. What is the nature of gains on sale of flat? What would be cost of acquisition for the said house?
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EXPERT:
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Section 49(1) of the Income-tax Act, 1961 prescribes for cost with reference to certain modes of acquisition. The section reads as under:

“Where the capital asset became the property of the assessee

QUERY: Payment of regular installment for the house to be allotted. The house has been booked but the same will the delivered later on after several years (Possession later on – on completion of project by the housing board of the Govt./ Builders). It can be illustrated as under:

1. House booked & advance taken 1-4-1995

2. Installment payment on regular basis from 1-4-1996

3. House allotted (No. given) 1-4-2007

4. Possession given 1-4-2008

5. Registration u/s 17A 30-10-2008

6. Sold on 30-9-2011

What will be position of indexation for the cost of acquisition? What will be the date of acquisition?
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EXPERT:
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From the fact it is clear that house is held by the assessee from 1-4-2008 when the possession is received. Therefore indexation would be available from the same date

QUERY: A person acquired inherited property before Independence. Thereafter, he had obtained, the court order for legal heirship in the Financial Year 1991/92, At that time stamp duty was paid amounting to Rs. 1,98,840/-. Can it be considered as cost for indexation?
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EXPERT:
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Section 49(1) provides that where the capital asset acquired by an assessee by way of inheritance, the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it