20 November 2008
The query is regarding Section 50C. Due to restrictions under Urban Land sealing Act, the Assessee could not get full value of consideration (i.e. Stamp value). This is because the buyer is ready to pay tenancy charges to the current tenant to surrender their rights. This amount is reduced from consideration.
Example:- Mr.X has purchased Land for Rs.20 Lakhs to which provisions of Urban Land sealing Act, (Stamp Value Rs.50 Lakhs) with a condition to pay for the surrender of the tenancy rights to the respective tenants whenever and whatever manner Mr. X thinks fit. Whether Section 50C is applicable & how to calculate Capital Gain in such cases?
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