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Sellers tax liability on sale of house property


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Querist : Anonymous

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Querist : Anonymous (Querist)
14 September 2014 There is a house property whose GMV is 40 lacs. But the house is sold in 15 lacs due old residential building.

My question is whether seller has to pay tax on 15 lacs or 40 lacs.

14 September 2014 section 50C should apply and tax liability shall be computed on 40 lacs

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 October 2014 Thanks Nikhilji.

I want to elaborate my query.

The house was purchased by a partnership firm in 1992 for rs 250000. Later in 2007 the firm was dissolved and one partner takes the house. In 2010 the partner died and their legal heirs has sold the property for rs. 15 lacs due to old building and the house was also not in good condition due to closed for so many years.

Whether their is any way to save tax since the fair value of house is very low and its impossible to sold it in gmv value which are for current constructed buildings.






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