Holding period of gifted asset includes:
APeriod of holding by previous owner (per relevant Section)
BOnly period after gift
CPeriod from registration (per relevant Section)
DPeriod after 6 months
Answer & Solution
Correct answer: A. Period of holding by previous owner (per relevant Section)
1. Explanation 1(b) to Section 2(42A): for gift/inheritance/HUF partition assets, holding period of previous owner is included.
2. Preserves long-term character across non-taxable transfers.
3. Same rule for cost of acquisition under Section 49(1).
_Source: ICAI BoS CA Final Paper 7, Ch 4 "Capital Gains"_
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