tjr (Retired) (148 Points)
20 May 2015Dear Friends
In ITR-2 where to show (a)proceeds received from sale of ansestral property(b)investment in 54EC CG bonds.
details are as below :----
Market value of sold property as per Regn Authority = 5,37,900
Indexed value of property as per Govt Auth.valuer report = 4,36,736
Amount invested in 54EC CGTSBonds = 1,01,164 (Roff to 1,10,000)
Sale proceeds received = 4,25,000
Thanks in advance.
Z
( )
(2965 Points)
Replied 22 May 2015
In schedule CG
B [Long ter m Capital gain]
a i Full value of consideration Received/Receivable 425,000
ii Value of property as per Stamp duty authority 436,736 *
iii Full value of consideration as per S.50C 436,736*
*Was the case referred to valuer? If then 436,736 lest 537,900
D [Deduction u/s 54EC ] 101,164
Z
( )
(2965 Points)
Replied 22 May 2015
In schedule CG
B [Long ter m Capital gain]
a i Full value of consideration Received/Receivable 425,000
ii Value of property as per Stamp duty authority 436,736 *
iii Full value of consideration as per S.50C 436,736*
*Was the case referred to valuer? If then 436,736 lest 537,900
D [Deduction u/s 54EC ] 101,164
tjr
(Retired)
(148 Points)
Replied 24 May 2015
Thx for the reply, just one more clarification please:-
If Mkt Val is higher than Indexed Val then should Mkt Val be taken ? Irrespective of the fact that indexed Val was given by Govt auth valuer. Kindly clarify.
Z
( )
(2965 Points)
Replied 24 May 2015
Yes, unless you go in appeal etc or the case has not been refered to valuation officer
Am quoting the entire provision for more clarity
NOTE that I am presuming that value has not been refered to valuation officer BY ASSESSING OFFICER
IT APPEARS THAT YOU HAVE YOURSELF TOOK SERVICES OF VALUER
S.48) The income chargeable under the head "Capital gains" shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer (Which in this case is 4.25L but this value is subject to Value as per S.50 C (sited below)) of the capital asset the following amounts, namely :—
(i) expenditure incurred wholly and exclusively in connection with such transfer;
(ii) the cost of acquisition of the asset and the cost of any improvement thereto:
50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed [or assessable] by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority" ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed [or assessable] shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer.
[That is Full value of consideration shall be 537,900 (CASE NOT REFERRED TO VALUATION OFFICER] but 436,736 {IF CASE REFERRED TO VALUATION OFFICER & HE FIXED THIS VALUE]
(2) Without prejudice to the provisions of sub-section (1), where—
(a) the assessee claims before any Assessing Officer that the value adopted or assessed [or assessable] by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer;
(b) the value so adopted or assessed [or assessable] by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court,
the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer
Then suppose your declared value is 2L
Stamp Duty value is 3L
3L shall be the value, but suppose you ask for refering the case to valuation officer
case 1)Value as per Valuation officer is 2.5L
Value for the purpose of cap gain shall be 2.5L
Case 2) Value as per valuation officer is 4 L
Value for the purpose of cap gain shall be 3L (limited to Stamp authority value)
Case 3 Value as per valuation officer is 1.8L
Value for the purpose of cap gain shall be 2L (As already declared by you)
and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modi-fications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act.
[Explanation 1].—For the purposes of this section, "Valuation Officer" shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).
"Valuation Officer" means a person appointed as a Valuation Officer under section 12A of Welath tax Act, and includes a Regional Valuation Officer, a District Valuation Officer, and an Assistant Valuation Officer
[Explanation 2.—For the purposes of this section, the expression "assessable" means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty.]
(3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed [or assessable] by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed 18[or assessable] by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer.]
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