samiksha nagar (Student CA Final) (168 Points)
26 June 2014Agreement to sale capital assets was mad on 15/03/2008. it was sold for rs. 50 laks, payment made through cheque. at the time of sale its guidline value was rs. 1 crore. its registry was done on 01/05/2014 and its guideline value was rs. 2 crore.
now what value of that property shall b taken for tax purposes?
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 26 June 2014
Assumed capital asset is an immovable prop.
Tax consequences in the hands of seller:
Income from Capital gains -
| Full value of consideration(Stamp duty v. as on 01.05.2014 pusuant to sec 50C) | 2crores |
| Less:Cost/Indexed cost of acq | xxxxxx |
| ST/LT capital gain | xxxx |
In the hands of buyer
Income from other sources:
| Immovable prop received for inadequate consideration(*1 crores-50 lacs) taxable as IFOS u/s 56(2)(vii) | 50 lacs |
| *Stamp duty value as on the date of agreement fixing the consideration(15/03/2008) may be taken at the option of buyer as part of consideration(Rs. 50lacs) was paid by a mode other than cash |
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