21 November 2014
The assessee purchased a plot of land in 2009 for Rs. 30 lakhs. The assessee sold it in 2014 for Rs.50 lakhs. The sale deed was registered for Rs.50 lakhs but the buyer paid the stamp duty for Rs.70 lakhs as that was the market value. Can the asseeee take the sale consideration as Rs.50 lakhs/
21 November 2014
Section 50C of income tax provides that if the value stated in the instrument of transfer is less than the valuation adopted, assessed or assessable by the stamp duty authorities, the valuation as adopted, assessed or assessable by the stamp duty authorities will be considered for the purpose of computation of capital gains arising on transfer of land or building or both.