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Sale of property

SSG (1936 Points)

11 May 2014

A residential house property is sold for Rs. 1crores, but the registry is made for Rs. 60 lacs. What will be the sale consideration, for calculating the capital gain, - Rs. 60 lacs or Rs. 1 crores?

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10 Replies

Sahil Bhatia (Practicing Chartered Accountant) (290 Points)
Replied 11 May 2014

60 lakhs as its the stamp duty value as per section 50c

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Mihir (Wealth Manager) (5293 Points)
Replied 11 May 2014

White portion alone to be shown in ITR. But first check with the stamp duty ready reckoner about the stamp value of your property whether it is less or more than 60 lacs.

Rakhi (Article) (22 Points)
Replied 11 May 2014

It should be 1 cr.section 50C is attracted in case where sale consideration is less than the stamp duty of the property.In this case sales consideration is more than stamp duty value of the property hence capital gains will be calculated taking 1cr as sales value.

Rakhi (Article) (22 Points)
Replied 11 May 2014

But since stamp duty value is less than sales value assessee can compute cap gains on 60 lakhs. And receive remaining 40 lacs in black..

Sahil Bhatia (Practicing Chartered Accountant) (290 Points)
Replied 12 May 2014

M sorry for the above-50c wont be attracted. And i'll agree with rakhi and mihir as only the white portion whether 60 lakh or 1 crore whichever is higher will be taken as sale consideration.

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SANJAY RATHORE (article) (60 Points)
Replied 12 May 2014

U hve sold the property @ 1 crore bt registered at 60 lac .. it means 40 lac is black money .. first of all u hve to check stamp duty value of the property .. if sdv is more than 60 lac than sdv value will be taken as full value of consideration otherwise the registery value of the property will be full value of consideration as per section 50c ...

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 12 May 2014

The money received through cheque/cash (shown in white in registry) will be taken into account for calculating capital gain wheather 1 cr or 60 lac. As in your case it should be 60 Lac because registery is being done for that amount.

and section 50 c attaract when stamp duty value of peroperty is higher than what you receive in white.

SANJAY RATHORE (article) (60 Points)
Replied 12 May 2014

There nthng like that cheque amount will be considered for the purpose of calculating capital gain ..when we entered into an agreement to sale and at the time of registery of the property we have to show by which through we have received the payment whether by way of cash or cheque or kind and all the above will be considered for computing cg

SSG (1936 Points)
Replied 21 May 2014

Rs. 1 crore is received in bank account. The registry is done as per the stamp duty value i.e. Rs. 60 lacs. Now if sale consideration is taken as Rs. 60 lacs, then how to show the source of balance Rs. 40 lacs?