Stamp value on calculating capital gain..

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2016 Hi,

Which Value is to be considered while calculating capital gain either Sale Consideration or Stamp Duty value in following case:

1. When Sale Consideration is more than Stamp Duty Value?
2. When Sale Consideration is less than Stamp duty value?

Also kindly clarify when one shall be held to adopt value mentioned by stamp valuation officer?

Shishir Nayak

Shishir Nayak (Expert)
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30 June 2016 As per Sec 50C if a property is sold below the Stamp duty Value, the Stamp duty value of the property would be deemed to be the rate at which property has been sold and capital gains lax would be levied assuming that the properly has been sold at the Stamp duty value.

However, In case the taxpayer claims before the Assessing Officer that the fair market value of the property is genuinely lower than the stamp duty value the Assessing Officer may request the valuation officer to conduct a valuation of the property .

In case a valuation is conducted by the Valuation officer and

1) Value ascertained by the Valuation Officer is lower than the stamp duty value. The Value so ascertained
by the Valuation officer would be deemed to be the Sale Price

2 )Value ascertained by the Valuation Ofﬁcer is more than the stamp duty value The stamp duty value would be deemed to be the Sale Price.

And When sale value is more than Stamp duty value of course the sale value will be considered for the computation of capital gain.

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2016 Thank a lot Shishir Nayak Sir,...

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