13 August 2013
Sir, I bought a land in 1987 for Rs 20000 only. But when in 2008 I needed money I agreed to sale the land to a friend for Rs 21 Lakh only. But when my friend registered its cost was Rs 45 Lakh as on stamp paper in 2013. But Since I received only Rs 21 Lakh in 2013 (this is also mentioned on registration papers). Kindly suggest what I have to pay as tax, the land was agriculture land when I purchased and sold, as mentioned in registration papers.
17 February 2014
If as per the revenue records if the value of land is 45 lacs, it is adivisable to pay tax on gains calculated as if consideration received is 45 lacs because it if you pay tax on consideration of 21 lacs, income tax department will consider it as undervaluation and impose penalty
CAclubindia
