Sale consideration for capital gains

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Krishna Murthy (Querist)
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07 September 2007 A property is sold for which Sub Registrar value adopted for stamp duty is morethan actual sale consideration.. What is the amount need to be considered for computing capital gains... Sub registrar value or actual sale consideration... please reply me this quickly

Nitesh

Nitesh (Expert)
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08 September 2007 sub register value will be consider as sales value even though actual amount is less. but if actual amount is more than registar value than actual amount will be consider.

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miraj d shah

miraj d shah (Expert)
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09 September 2007 A new section 50C has been inserted from AY 2003-2004 the same is reproduced herein. The value of the Stamp Authorities if higher then actual consideration will be deemed as Sale proceeds. However assessee can claim that the said value is not correct and in such cases the AO has to refer the matter to the Departmental Valuation Officer DVO who shall make a value. If value of DVO is less than the Stamp Authorities the said value has to be adopted by the AO. If the value by DVO is higher then the value of Stamp Authority shall prevail.

50C.Special provision for full value of consideration in certain cases

(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 â€œstamp valuation authorityâ€) 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), whereâ€”

(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.â€”For the purposes of this section, â€œValuation Officerâ€ 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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