Sale of property.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2015
I want to sale my a fully tenanted building wherein unauthorised peoples are also jiving.

Naturally the buyer is paying me a price which is 50 percent below the circle rate.

I also came to know that ITO do not accept the transactions below the circle rate and impose tax on difference amount,

Please suggest me a way out.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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24 March 2015 A question before answering to your question -
1. why you want sell your property below the rate prescribed by the Govt?
2. I think, you are looking a suggestion for handling the black money transaction. Do you know,it is offence?

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2015 Answer to your question

No1) The premises is fully tenanted and also some portion of premises is under under
unauthorised occupation. The propsed sale is a distress sale. No buyer is ready to pay more than 50 percent of the market value.

No2) Further for your information if the sale is executed I will take the entire sale proceeds by account payee cheque and invest the same in NABARD capital gain scheme.

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CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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27 March 2015 Sir,
Please tell, Where is the property situated? Where you are situated?

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2015
1) The property is situated at Burrabazzar in Kolkata.

2) I am living in Lake town area of Kolkata.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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27 March 2015 Before giving answer, I would like to say 3 points:
1. Initially sorry for delay in answer.
2. Whatever here, I'm posting is based on practical experience.
3. There is no direct and clear answer for your problem.

Section 50C provides that if the value stated in the instrument of transfer is less than the valuation adopted, assessed or assessable by the stamp duty authorities, the valuation as adopted, assessed or assessable by the stamp duty authorities will be considered for the purpose of computation of capital gains arising on transfer of land or building or both.

So, ITO will assess the property value based on the value prescribed by the stamp authorities.

So, in your case, sale value is less than the value prescribed by the authority. Now the question is, how you prove your sale consideration shown in the itr is genuine?

You posted in your post that, your property is under unauthorised occupation. Thats by you bound to sell in lesser value. Because, no one ready to pay market value.

During the assessment, you have to prove that, the said property is under the unauthorised occupation, that's by you bound to sell in lesser value.

Therefore, you can submit the copy of the police complaint or the complaint you filed before the municipal authorities /corporation for the purpose of prove your view.

However, whether ITO will accept your arguement, is questionable matter. Anyway, you try your level best.

In case of any further clarification, you can mail me at, shetty@ssrshetty.co.in

For more details, you can visit www.ssrshetty.co.in

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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27 March 2015 In case, you are not yet filed complaint with authorities, immediately you lodge the complaint and keep the ack with you.