Gifted property - Cost Inflation Index

[Kaladhara Saralaya]

In case of gifted property, what should be the Cost Inflation Index (CII) rate we have to apply to arrive at the cost for the purpose of calculating capital gains? Is it CII of the year in which the original owner (Donor) became the owner of the property or of the year on which the donee receives the gift?

AI Summary

Debate on Cost Inflation Index for Gifted Property: Year of Original Acquisition vs. Year of Gift Reception The discussion addresses the Cost Inflation Index (CII) applicable to gifted property for capital gains calculation under the Income Tax Act, 1961. The primary question is whether the CII should be based on the year the original owner acquired the property or the year the donee received the gift. One response suggests using the CII from the year the property was received by the donee, while another argues for using the CII from the year the original owner acquired the property or from 1981 if held prior. The debate highlights potential inconsistencies in the law's interpretation and suggests applying provisions beneficial to the assessee.