Capital Gains Tax

This query is : Resolved

r p shankar rao (Querist)
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21 March 2008 Dear Sir
Recently my friend sold a land for Rs.200000/-.This land he got it from his mother(died in 1987)and she got it through a will written by her Aunty.Originally the land was purchased in 1968 for Rs.3000/-.My friend sold this land Distrously because some body occupied this land and he found from the Registrar office that it was sold 5 times.The original papers were with him so the buyer was interested in buying this.The buyer paid stamp duty as per the Government rate of Rs.14.00 lacs.

Now what will be the Long term capital gains tax to be paid by him.He was unable to get the Fair Market Value as on 01-04-1981.Also let me know the rate and on which amount he has to pay tax.Please answer me as early as possible.

Jitender

Jitender (Expert)
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21 March 2008 if it is unable to get the fmv on 1.4.81, then take the purchase price before 81.
tax will be charged @20%.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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21 March 2008 Special provision for full value of consideration in certain cases.

50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a State Government (hereafter in this section referred to as the “stamp valuation authority”) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer.

(2) Without prejudice to the provisions of sub-section (1), where—

(a) the assessee claims before any Assessing Officer that the value adopted or assessed by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer;

(b) the value so adopted or assessed by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court,

the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act.

Explanation.—For the purposes of this section, “Valuation Officer” shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).

(3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer.]

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