Section 50c of the income tax act, 1961

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2017 Mr. A appoints Mr. B as his attorney to sell his immovable property at price of Rs.X to anyone of the prospective buyers.

Mr. B sold the property at Rs. Y (which is higher than Rs.X) to Mr. C. Rs. Y is the stamp duty value as on the date of execution of sale deed.

Mr. B received the entire sales consideration in his own account as he is holding power of attorney and returned Rs.X only to Mr. A and remaining amount has been kept by him.

Query:
1. In this case what will be sale value to be treated in the hands of Mr. A for the purpose of Section 50C as he receives only Rs.X as sale consideration?

Sumeet

Sumeet (Expert)
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05 December 2017 Sale Value for the purpose of Section 50c is higher of the stamp value or actual considiration recieved.
So in your case sale value to be treated in hands of Mr A will be Rs Y for the purpose of section 50c.