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Capital gain

Sai Preetam (CA Student) (55 Points)

03 July 2016

Land was purchased on-10/2/2006 for Rs 120000, After few yrs a shed was constructed on tht land in 2010-11 for Rs 625000, on 30/6/2016 land was sold for 16 lakhs, The market value of land is 2500000.My question is what will be the sale consideration?

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10 Replies

chandra (student) (528 Points)
Replied 04 July 2016

Sale consideration is the amount for which the land was sold 16 lakhs.

Your problem is not clear. What exactly you want

Sai Preetam (CA Student) (55 Points)
Replied 04 July 2016

My question is wch one i need to take as a sale consideration, market value or sale value!

Manoj Pandit (student) (139 Points)
Replied 04 July 2016

Dear sir. You should consider your sale value only as sale consideration if it's higher than

Manoj Pandit (student) (139 Points)
Replied 04 July 2016

# the stamp duty value.

Honey Sharma (4 Points)
Replied 04 July 2016

in case of stamp duty value the provision of sec55 is applicable ?????

Manoj Pandit (student) (139 Points)
Replied 04 July 2016

@ Honey sharma. Sir, Sec 50C is applicable for cases where the sale actual sale value is less than the value considered in stamp duty payment.

Sai Preetam (CA Student) (55 Points)
Replied 04 July 2016

Since actual sale value is less than market value can i take whicher is higher as per sec 50C.

Dwaipayan Paul (Ca final) (1767 Points)
Replied 04 July 2016

U have to ask the value as per stamp duty valuation u/s 50c

If stamp value is more than actual sale,stamp value will be taken

If stamp value is less,then actual sale value of 16l shall be considered

Manoj Pandit (student) (139 Points)
Replied 04 July 2016

@ Sai preetam, Dear Sir, Market value nowhere comes into picture. Kindly follow the above comment of Dwaipayan paul. Compare the value mentioned for the stamp duty payment purpose and 16 lakh whichever is higher should be taken as sales consideration.