Clarification regarding sec 50c

This query is : Resolved

Puja Agarwal (Querist)
Follow

12 September 2015 Sir\Mam
What will be the cost to the 'buyer' where value adopted by stamp valuation authority is taken as FVC for capital gains purpose

Guest

Guest (Expert)

12 September 2015 If purchases the land as stock in trade then Cost of the Buyer would be the money he actually paid for purchasing the property..If he is taking it as a capital asset then the cost of acquisition would be the stamp duty value.

Puja Agarwal

Puja Agarwal (Querist)
Follow

12 September 2015 So that means if the assessee is claiming deduction u/s 54 for this new house purchased he will get the deduction upto the amount fixed by the stamp authority ??

Upgrade to CAclubindia Pro. Subscribe Now!

Guest

Guest (Expert)

12 September 2015 Ya..exacltly..you are right..Even this facts are supported by the Karnatka HC in the case of Gouli Mahadevappa..