GREETINGS OF THE DAY, MY CLIENT WANTS PURCHASED A PLOT FROM MR A @ 4000/- PER SQ.MTR. THE PLOT ALLOTED TO MR A BY HSIIDC . MY QUERRY IS THE CIRCLE RATE IS IN THAT AREA OF RS 6000/-. MY CLIENT IS AGREE TO PAY STAMP DUTY ON CIRCLE RATE i.e. RS 6000/- AND ACTUALLY HE IS PAYING FOR PLOT 4000/- PER SQ. MTR. ONE OF CA TOLD MR A THAT THE DIFFERENCE BETWEEN 6000/- TO 4000/- OF RS 2000/- WILL BE ASSUMED AS GIFT AND MR A WILL BE LIABLE TO PAY INCOME TAX ON 2000/- PER SQ. METER. IS IT RIGHT OR WROUNG PLEASE
23 January 2010
That CA is right. Your client ( Purchaser ) will be taxed u/s 56(2)(vii) under "Income from other sources" for the difference of Rs.2000/- per sq.ft . Mr.A ( seller) will be taxed u/s 50C for capital gains for value of stamp duty as full value of consideration of plot sold i.e @ Rs.6000/- per sq.ft
Rgds CA Amitabh Gupta Indore ag_ind@rediffmail.com
CAclubindia
