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Section 50 of pgbp

dashmeet singh (student) (108 Points)

29 July 2016

For the purpose of Section 50 of Pgbp, what value we take for Sale consideration? FMV or Actual Sale Value?

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mohammad rasool baig (Management Consultant) (1026 Points)
Replied 30 July 2016

Section 50C has been introduced with effect from 01-04-2003 and is a very important section while calculating capital gain on land & building. Section 50C provides that 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 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.

It means that the capital gain will be calculated by considering the sale value of the capital asset as equal to the value adopted or assessed by the stamp valuation authority for that capital asset if the actual sale value is less than the value assessed by stamp valuation authority.

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