26 November 2015
If a property is sold for a consideration which below the municipal value of the said property. Then whether the difference between the municipal value and the consideration will be added to the income?
For example the municipal value of the property is Rs. 50 L and the consideration is Rs 35 L. Then whether the difference amount of Rs 15 L will be taxable in the hand of the seller?
On what value shall the capital gains be calculated. Rs 35 L or Rs 50 L?
26 November 2015
In the hands of the seller u/s 50C the municipal value will be considered for the purpose of calculation of capital gain. In the hands of the buyer the 15 lacs will be treated as gift and taxed u/s 56.
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