Query regarding sale of land

Tax queries 463 views 3 replies

Ankur Rastogi

Chartered Accountant

53 Points Joined February 2010

Dear all,

I have a query regarding income from sale of Land. In this case assessee has sold lot of lands which he purchased in 1995

at different places. now in FY 2012-13 he sold those lands. Sales consideration declared in the conveyance deed is less then the value adopted for purpose of stame duty by stamp valuation authority.

Now my query is that income from sale of these lands treated as capital gain income or business income?

If it treated as business income what will be the sale consideration amount i.e. conveyance deed amount or amount declared by the stamp valuation authority?

Please reply on this as soon as possible.

Replies (3)

CA. Dushyant ZALA

PRACTISING C.A.

72 Points Joined February 2010

Ankur

If A.O. treats it as businsess income than section 50 C is not apply since upto A.Y. 2013-14.

However, in this budget there is new section 43(CA) is introduced. As per this section, the valution as per stamp duty authority will be apply eventhough land or buidling is stock in trade.

This is apply from A.Y,2014-15.

However, it A.O. in your case if he treats as capital gain on sale of lands than section 50 c apply and value as per stamp duty authority apply.

CA. Dushyant ZALA

PRACTISING C.A.

72 Points Joined February 2010

Ankur

As per section 43(CA) if the assessee take booking amount by way of cheque than eventhough conveyance deed made latter on than the value at the time of booking will apply not value at the time of conveyance deed.