Inheritance
Regulation & taxAssets received on the death of the previous owner.
In plain terms
Untaxed on transfer in India, but the original cost and holding period carry over to you.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Cost of the previous owner
Regulation & taxWhere a capital asset is received by gift, will or inheritance, the cost taken for computing the eventual gain is the cost to the person who last acquired it by purchase, and the holding period includes theirs.
In plain terms
Not the value on the day it was given to you, which is what almost everybody assumes. The depository moves the security and never the cost or the date, so the recipient needs the original contract notes handed over or the gain will be computed from nothing.
Family agreement
Risk & psychologyA shared understanding among relatives about an indivisible asset.
In plain terms
Have the conversation before acting. Silent assumptions turn a shared inheritance into a decade-long dispute.