Capital gain & gift tax

641 views 3 replies

 

Dear All,

My friend diverted their rural agriculture land & developed colony iinto plots & sales them as business asset. my friend also sold the plot less than stamp valuation.

1) Whether Sec. 50C will be applicable ?

2) whether sec 56(2) will be applicable on the buyer & whether they have to pay tax on difference between amount of stamp duty valuation & actual purchase price paid by them.

 

Replies (3)

since plot is Stock in trade hence sec 50C will not be attracted as 50C for cap gains and not for PGBP 

also note 56 is not applicable for part consideration of immovable property

 

Thanks 

But what About Sec.56(2) ?

hey by mistake I miswritted the section

now modified the above, check now

i.e. 56 will not apply to immovable property for part perfoemance of contract


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