Capital gain

This query is : Resolved

Roshni Garach (Querist)
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27 January 2013 Is there any tax liability of capital gain in hands of buyer of immovable property if he/she purchased it at the value which is less than its market value.

CA Manoj vijay

CA Manoj vijay (Expert)
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28 January 2013 No. There is no tax liability in hand of buyer but if transfer is made between related parties and difference of acctual consideration and municipal value exceed Rs. 50000/- than it will be treated as gift

Guest

Guest (Expert)

28 January 2013 Agree with Manoj Sir.

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Prakash Kochar

Prakash Kochar (Expert)
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29 January 2013 For Immovable property if it is without consideration same will be treated as GIFT. In sale transaction of immovable property even if the sale value is less than Stamp Duty Value it will not be treated as gift liable for tax. Sect. 56(b)

In case of any property other than Immovable property if sale is for consideration which is less than the aggregate fair market value the difference will be treated as gift.sect. 56(c)

Roshni Garach

Roshni Garach (Querist)
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30 January 2013 Manoj Sir , you mean if they are not related parties then there is no tax liability in hands of buyer as gift???

Roshni Garach

Roshni Garach (Querist)
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30 January 2013 If the Difference of agreement value and market value is around 10 lks