Riya cahudhary (Job) (132 Points)
26 April 2016Hello Friends,
Can any one suggest me that where a land or building is purchase by a person other than individual and huf a price which is less than circle rate or stamp duty value, is it taxable in the hand of buyer. If the answer of affermative is yes, please mention the section under which it is taxable and also the the cost of acquisition and period of holding for buyer.
Prasobhkumar R.
(Chief Operating Officer)
(67 Points)
Replied 26 April 2016
No it is not taxable. As per income tax act income from capital gain is taxable in the hands of the seller who receives the money in return.
The seller can file a return stating the sales price below the fair market value fixed by the state government. But the assessing office have enough freedom to fix the service of a valuer to arrive the fairmarket value.
But as per the ammendment on budget 2013, the section 56(2) vii says that, if the circle price is lower than the sales price and difference between the sales price and the circle price is morethan rupees 50,000, the buyre is to be taxed under the head income from other source. it came into force from 01.04.2014.
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