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Regarding capital gain

279 views 6 replies

anita mourya

practice

68 Points Joined August 2011

I had purchase property at below market price for Rs. 1760000. and the difference between market price and actual price is Rs.168000 (i.e 1928000-1760000). which I recored in my return as income from other sources u/s 56(2)(vii). Now when I am selling the property at Rs. 2000000. what will be my purchase consideration. and how i would reflect this in audit report of this year.

Replies (6)

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Computation of capital gain.
Full value of consideration = Selling price or fair market value whichever is higher ( assuming 20 lacs is higher ) 2000000. Cost of Acquisition = 1928000 as per Sec 49(4).
Indexation if applicable.

CA ALOK KUMAR

FCA LLM (NLU) Anti-Money Laundering Sp

644 Points Joined February 2015

What is the value written in transfer documents? Purchase Value shall be the amount mentioned in transfer documents like Sale deed, agreement to sale, receipt etc..
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CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Disagree with Nandan ji.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Under the existing provision contained in sub-section (4) of section 49, where the capital gain arises from the transfer of a property, the value of which has been subject to income-tax under clause (vii) of sub-section (2) of section 56, the cost of acquisition of such property shall be deemed to be the value which has been taken into account for the purposes of the said clause (vii).