Tax implication

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Accounts Executive
94 Points Joined May 2012
Property sold at 1.50crores whose assessed market value is 1.87crores. Buyer has paid stamp duty on 1.87crores. Being a seller, what will be his tax implication as per Income Tax rules?
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On 14 July 2016 at 14:08 Report
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Asst Manager(Internal audit)
1679 Points Joined May 2011
seller has to file for capital gains if any from the original cost of asset, and purchaser will have income from other sources to the extent of 37 lakhs as he purchased at a value and value is > 50,000/-
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On 14 July 2016 at 14:34
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Accounts Executive
94 Points Joined May 2012

Capital gain will arise upon 1.87crores.

But IT Dept may raise questions about such lower valuation. Then what will be the outcome?

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On 14 July 2016 at 14:41
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Asst Manager(Internal audit)
1679 Points Joined May 2011
they will not ask if full tax is paid.... on 1.87, that is what income tax department says in 50C
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On 14 July 2016 at 14:45
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Accounts Executive
94 Points Joined May 2012

But if I reinvest the entire capital gain amount in buying a new property, and I dont pay any taxes on 1.87cr.

Then will IT dept allow this transaction ?

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On 14 July 2016 at 14:51
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Asst Manager(Internal audit)
1679 Points Joined May 2011
yes ofcourse, you can purchase a property and take the exemption of capital gain
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On 14 July 2016 at 14:57


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