Hi..
Can i have some examples of adequate and inadequate consideration
11 Replies
Amit Ingale
(Student CA Final)
(1454 Points)
Replied 19 October 2009
refer the case laws on that matters.
thats only shall be best example.
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 19 October 2009
Read by this link
https://humanum.arts.cuhk.edu.hk/Philosophy/Locke/echu/lok0041.htm
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 19 October 2009
Adequate consideration and inadequate consideration can be understood by a very simple example. Suppose. if you are going to buy some property having a fair market value of Rs.10 Lacs, but you are either paying 15 lacs for the same just to increase your cost of purchase or you are paying Rs. 6 lacs just to give benefit to the seller by reducing his sale consideration and hence the capital gains. In this case it shall be assumed that you are paying inadequate consideration. It can be both ways, either for yourself, or for someone known. You need to prove the adequacy of the transaction.
(Guest)
| Originally posted by :CA.Tarun Maheshwari | ||
| " | Adequate consideration and inadequate consideration can be understood by a very simple example. Suppose. if you are going to buy some property having a fair market value of Rs.10 Lacs, but you are either paying 15 lacs for the same just to increase your cost of purchase or you are paying Rs. 6 lacs just to give benefit to the seller by reducing his sale consideration and hence the capital gains. In this case it shall be assumed that you are paying inadequate consideration. It can be both ways, either for yourself, or for someone known. You need to prove the adequacy of the transaction. | " |
Good explanation.....
Udhins
(Chartered Accountant)
(113 Points)
Replied 19 October 2009
U/s.24 we have provision for claiming the "prior period interest" in 5yers .... But do we hav any provision for claiming deduction U/s80 C for those principle installments paid during the construction period after the construction is over?
Coz in a point it says "those installments paid during the construction period cannot be claimed u/s. 80C during construction period!
santhosh
(Student)
(1174 Points)
Replied 19 October 2009
For claiming U/s 80c pre- construction or post construction is dosen't matter... usually repayment will start only after construction....
Nitin Grover
(CS)
(1228 Points)
Replied 24 October 2009
Dear Friend
in my views Adequate Consideration means consideration is fixed for example you are purchasing a House with 5 Ac's fixed in house an done car Honda City and u r paying 50 Lacs + 50 Thousand + 6 Lacs respectively its calles Adequate consideration
and if u paying lump sump 56 lacs then its Inadequate
Thanks
Nitin Grover
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