Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2014 sir,
my sir asked a question that:-
ek registry hui h jiska
transaction price: 400000/- h,
market value:1500000/-
stamp duty and other exp.incl. reseipt:-103000/-
date:-10/07/2013.this information is full
as per sir said.
Now question is,this transaction affect which sec. of which Act?
what is the tax liability in this case? &
how to reduce tax liability?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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05 March 2014 1. Section 50C of the Income Tax Act is attracted in this case. Section 50C provides that where the transaction value is LESS than the stamp duty value, the stamp duty value shall be treated as the sale consideration.

2. Computation of Capital Gain

Sale Consideration 15,00,000
Less: Expenses 1,03,000
Less: Cost of acquisition

The resultant amount will be capital gain.

3. Exemption can be claimed u/s 54, 54F or 54EC.