What is the tax implication on purchaser in case of undervalue purchase of immovable property ?
and How i will show it in our books of account ? and If any risk, please convey all information regarding that ?
E.g. "A property circle value Rs.1.5 crores but seller sell that property undervalue in Rs.1 crore and purchaser also purchase it."
8 Replies
PUSHP KUMAR SAHU
(CA FINAL ASPIRANT)
(3115 Points)
Replied 20 January 2019
you can file application u/s 55A to your concerned A.O. ....for revaluation of your property value ..if you are receiving less amount than circle rate
Rajat Singhal
(95 Points)
Replied 20 January 2019
it is the duties of seller, my query related as purchaser what tax implication and other query above mentioned?
PUSHP KUMAR SAHU
(CA FINAL ASPIRANT)
(3115 Points)
Replied 20 January 2019
difference between the amount as per circle rate and transaction amount will be charged in your hands as gift ..is value of such gift exceeds 50000 INR..section 56(2)(x)
Rajat Singhal
(95 Points)
Replied 20 January 2019
under other source income, if my registry value is just only rs. 1 crore.
PUSHP KUMAR SAHU
(CA FINAL ASPIRANT)
(3115 Points)
Replied 20 January 2019
yes...it will be taxable under the other sources...
Rajat Singhal
(95 Points)
Replied 20 January 2019
my registry of property is just only Rs. 1 cr. and i pay stamp duty on 1.5 cr. then my books of account value is Rs.1.5 cr or Rs. 1 cr
PUSHP KUMAR SAHU
(CA FINAL ASPIRANT)
(3115 Points)
Replied 20 January 2019
It should be recorded at 1crore in books of accounts
Rajat Singhal
(95 Points)
Replied 21 January 2019
Then, what is the treatment in books of account of amount Rs. 50 lacs, on which i will pay tax under gift income?
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