In case of gifted assets index to be taken of the year in which acquired by previous owner

Indexed cost of gifted assets has to be determined with reference to previous owner s. 55(1)(b)(2)(ii) provides that where the capital asset became the property of the assessee by any of the modes specified under s. 49(1), not only the cost of improvement incurred by the assessee but also the cost of improvement incurred by the previous owner shall be deducted from the total consideration received by the assessee while computing the capital gains under s. 48. The question of deducting the cost of improvement incurred by the previous owner in the case of an assessee covered under s. 49(1) woul...