Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Income Tax This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

Indexed Cost of Acquisition, Income Tax

Issue Id: - 117399
Dated: 3-8-2021
By:- Bayyareddy DK

Indexed Cost of Acquisition


  • Contents

Dear Sir,

Though in the definition of 'indexed cost of acquisition', the word used are, "in which the asset was held by the assessee" a harmonious reading of Sections 48 and 49 makes it clear that, for the purpose of 'Indexed Cost of Acquisition', it has to be understood as the first year in which the previous owner held the said property. Otherwise, if the date of inheritance is taken into consideration, then the cost of acquisition of the asset on that date corresponding to the market value is to be taken into consideration.

My client purchased agricultural land in 2004 converted in the year 2014. He made agreement to sell but did not conclude the deal. He died in the year 2016. His son made agreement to sell to different party and received part payment. Son died due to Covid in April 21. Son's wife is making a sale now. What is my cost of acquisition, can I take market value in the year 21 as cost of acquisition even though I have 2004 purchase cost and converted costs which are very less. Please advice

Posts / Replies

Showing Replies 0 to 0 of 0 Records

No Post / Reply found for this query

Old Query - New Comments are closed.

Quick Updates:Latest Updates