In the financial yaer 2005-06, an assessee ( Prop.)has sold his property below the circle rate.. For Eg: The rate approved by the govt was Rs. 40,00,000 but the assessee sold it for Ts. 30,00,000. so wtat are its implications..
As per sectoin 50c, if the assessee has valued its propertty less than the circle rate, then assessee has to value its property as per the rates valued by the valuation officer. which would be Rs.40,0,000, and u r saying that valuation will be made on Rs.30,00,000. How? Plz explain in datail
06 December 2008
As per section 50C of The Income Tax Act,1961 where the consideration received or accruing as result of transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any local authority of a state government for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of consideration received or accruing as a result of such transfer. Stamp duty is levied on circle rate. Keeping in view the above points capital gains chargeable to tax will be calculated in the basis of consideration of Rs. Forty Lacs.
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