21 February 2018
I had purchased a commercial property for 22 lakhs in 2005 and sold it for 50 lakhs in 2017 but the property registration value was 95lakhs and the same stamp duty was paid by buyer what will be my capital gain
22 February 2018
For purposes of computing capital gain you will have to consider the circle rate of Rs. 95,00,000/-. You may dispute this rate and the AO will refer your case to the valuation officer. The problem with this is that if the Valuation Officer considers the market value to be equal to the stamp value you may be hit by a penalty for concealment of income. the gap in circle rate and actual consideration received by you is unusually high. what is the reason for this.
26 February 2018
In that case you can take the circle rate as on the date of agreement and compare it to your agreement value and pay tax based on the higher of the two. Note that this is a new benefit granted with effect from AY 2017-18. I expect a lot of litigations on your being able to prove factually that the agreement was indeed signed before having it registered. such cases are not normal.
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