Cost of Acquisition

[Vikas Malhotra]

Dear All,

I have a query regading cost of acquisition for Capital gain. According to will, a man had tranfer his house to her wife but she cannot sell the property. After the death of wife the property can be sold by 2 brothers. If the house is sold by sons then 1/7th of the sale proceed will be given to her daughter.

 

Is this be included as cost of acquistion in the hand of sons...

[CAGOPALJI AGRAWAL]

No not at all as it is just the direction in the will for sharing the propery or the benefits derived from the property.

AI Summary

Cost of acquisition: a will's direction to share sale proceeds is not treated as acquisition cost for selling heirs. Whether a direction in a will to allocate a share of sale proceeds to a daughter operates as cost of acquisition in the hands of sons who sell inherited property; the reply states that such a testamentary direction is not cost of acquisition for the sons but an internal allocation of the estate's proceeds.