28 January 2011
Dear friends, Please suggest me in the following:
one of my client was sold his land after getting clearance from Revenue Dept. in the year 2009-10 for sale consideration of Rs.10 lakhs where the stamp duty value is Rs.1 Crore.
however the land was under dispute with revenue department upto 31.03.2009. in 2008 he entered a formal agreement with Mr.X for sale the property by taking non refundable deposit of Rs.1 lakh by condition that if the dispute clears he should sold the property for the value of 10 lakh.
Whats my Question is whether we can take sale consideration for calculation of Capital gain purpose or else apply 50C.
28 January 2011
Land yet to be sold, only reciving the deposit is not a sale. In case sale is completed for less than Rs. 1 crore ( as per stamp valuation authority). sale consideration will be RS. 1 crore ( sec 50C).
Guest
Guest
(Expert)
28 January 2011
However, in genuine cases, one can contest against the valuation u/s 50C following the lawful procedure.
CAclubindia
