Nikhil sharma (student) (34 Points)
21 August 2010Dear frn.
I have purchase property on 20/08/2010 at Rs 1.2cr but as per the stamp duty authority its consider at Rs 1.9cr for the purpose of capital gain. My Qution is am i responsible to pay tax on deemed income (Rs 70lac). Becuse i am buy property of worth Rs 1.9cr but me paying only Rs 1.2cr.
If you have any link regarding this concept, please farword me at masternic786 @ gmail.com
Thanx.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 21 August 2010
HI DEAR,
U R NOT LIABLE TO PAY ANY TAX ON THE DIFFERENCE BETWEEN ACTUAL COST AND STAMP DUTY VALUATION. THERE IS NO CONCEPT UNDER THE INCOME TAX ACT PROVIDING FOR TAXATION OF SUCH SUM.
THIS IS MY PERSONAL VIEW AND MAY BE WRONG. JUST WAIT FOR FEW MORE EXPERTS REPLY.
REGARDS,
MANOJ
Dheeraj
(Learner)
(1100 Points)
Replied 21 August 2010
SIR
THE CAPITAL GAIN ARISES AT THE TIME OF SALE OF PROPERTY
NOT AT THE PURCHASE OF PROPERTY
SO, IN ABOVE CASE, U HAD ONLY PURCHASED THE PROPERTY WHICH DOESNOT ATTRACT CAPITAL GAIN
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
CAclubindia
