CAPITAL GAIN

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This discussion addresses how to minimise capital gains tax when selling land. Key considerations include the sale price versus stamp duty valuation (Section 50C), the cost of acquisition (especially for assets acquired before April 1, 2001), and potential exemptions under Section 54F. It advises against Section 54EC and suggests seeking professional valuation to potentially increase the acquisition cost.

Raghavendra

Raghavendra (Querist)
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09 March 2021 A person sold a land on Dec 2020 for Rs. 1.00 Cr ,
Stamp Valuation is Rs. 1.70 Cr.
Cost of Acquisition is Rs.3.5 Lakh ( May 2001)
Improvement cost Rs. 5.00 Lakhs.
Person having more than 2 property and deposited Rs. 50.00 Lakh in NHAI bond.
How to calculate Capital Gain tax as low as possible? Instead of taking Stamp value as consideration any alternative procedure is there?
Kindly suggest.

ND (Expert)
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11 March 2021 Sale consideration will be considered at 1.70 Cr only as per Section 56. In case cost of acquisition is prior to 1.4.01, then you can get the valuation done by an approved valuer to increase the value if permitted as per circle rates.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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15 March 2021 Don't go for Section 54EC. Go for section section 54F and claim exemption if the conditions allow. As per section 50C you cannot avoid the value as per stamp valuation authority.

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