Here is how to calculate indexation benefits for gifted assets sold later

Calculation of indexation benefit for assets that are gifted and sold later has long been a contentious issue between the income-tax department and taxpayers. Sample this: A person sells a house that his father gifted him in 2010. But the property was purchased in 2001. Now, when calculating indexation benefit, should the son consider the date when he received the property as a gift or the date when his father purchased it? Mumbai’s Income Tax Appellate Tribunal (ITAT) recently ruled that taxpayers should be allowed to calculate indexation benefit from the date the original owners .....

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