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Value of agriculture land

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nagaraj kadlaskar

79 Points Posted on 14 September 2018

Agriculture land situated 5 kms away from corporation limit and slightly away from village panchayat limits. While purchasing in the year 2014, the Sub Registrar has given guideline rate of RS.36 L per acre. Accordingly, buyer has agreed and paid stamp duty on 36 L for an acre. Where as the sale deed is registered at Rs.6L per acre. The I.T. Dept. has issued notice to the buyer because the amount is Rs 40 L for the land. The seller has applied to the Dist. Register for revaluation and guidance value. Dist. Registrar has given the value at Rs.32 L. The real rate for the land is much less at Rs 6L per acre as per the SR for the land in the same area. What is the position of the buyer. What is the position of seller who has received amount of Rs.40L if he too receive notice from I.T.dept

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211649 Points Posted on 15 September 2018

As per section 50C(2), at the request of Seller, AO can refer for valuation of the capital asset to a Departmental Valuation Officer, and value the land as per the rate as lower of these two values.

As per Sec. 56(2)(vii), buyer will also be taxed for the difference amount u/h. IFOS, as per the said valuation adopted.

nagaraj kadlaskar

79 Points Posted on 16 September 2018

Is it possible that ITO can refer valuation of land to DVO when scrutinising, in hands of seller, when if in the hands of buyer the same thing was not referred to the DVO. I hope the question is clear.