Query on long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2012 I purchased an office in sep 1999 for rs 6 lacs, I hav not claimed any depreciation on it till date I.e. nov 2012. Now I will sell it in dec 2012 for rs 30 lacs. The valuation for stamp duty purpose is rs 72 lacs, which is more than twice the market value. I am told that the income tax dept can consider rs 72 less rs 30 lacs i.e. rs 42 lacs, as my deemed income and tax me on the same. Is it true? I will be investing the 30 lacs in another office immediately. Due to the illogical valuation for stamp duty purpose done in kolkata, I am not able to conclude this transaction , as I cannot pay the tax on deemed income if I have to pay it. Hav there been any cases where notices have been sent for deemed income on the basis of difference in stamp duty valuation and actual transaction value of property. Please advice what could be a legal way out of this problem....The property is not registered in my name and i will be the confirming party between the promoter and the buyer if the sale is effected.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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29 November 2012 According to the section 50C, you can claim that the value adopted by the stamp valuation authority is more the fair market value then the assessing officer MAY refer to the valuation officer for valuation of the fair market value of the asset.

If the valuation officer declares that the fair market value of the building less than the value adopted, assessed or assessable by the stamp valuation authority then the capital gain shall be calculated on the value so declared by the valuer.

Drat a suitable letter to the department.

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2012 dear dileep surya kumarji,

can this letter be sent before concluding the deal. to whom should the letter be addressed in the income tax department.

regards.

m garg

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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29 November 2012 IN my opinion , Yes , this letter can be sent before deal as the word assessable has been used in the section.

Address the letter to concerned ITO.

wait for other views.

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2012 Sir, pl reply to the following query

Cost of acquisition of office 6 lacs in sep 1999

Indexed cost as on date dec 2012 is approx 12 lacs

Sale consideration dec2012 is 30 lacs

No depreciation claimed on said property till date

Valuation for stamp duty rs 72 lacs as on date

Rs 30 lacs will be immediately deployed in another property

The property was not registered in my name and will be registered by the developer directly in the name of new buyer with me as confirming party now

What would be my tax calculation on this deal and under what head it is chargeable