NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
Under the Income-tax Act, from which date is the holding period of a capital asset acquired by an individual through a gift or inheritance counted?
The holding period includes the time the previous owner held the asset, so it is counted from the date the previous owner acquired it. The recipient also takes over the previous owner's cost of acquisition for computing gains.
- AFrom the date the previous owner acquired the assetCorrect
- BFrom the date of the gift or the donor's death
- CFrom the date of registration of the gift deed or will
- DFrom the beginning of the financial year in which the asset was received
Explanation
Under the Act, the holding period of an asset received by gift, will or inheritance includes the period for which the previous owner held it. The cost to the recipient is also the previous owner's cost of acquisition. Counting from the date of receipt alone would understate the holding period.
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