capital gain

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harish babu (Querist)

11 December 2010 hello everyone
I bought a piece of land for 25 laks and registered the same for 12 laks to pay the stampduty.
Now i want to sell the land for 30 laks.Then how much should i pay as capital gain tax.Is it 30 minus 25 (or) 30 minus 12.

Aditya Maheshwari

Aditya Maheshwari (Expert)

11 December 2010 Why there is a difference in purchase amount and registration amount? If agreement amount 25 lakhs then registration will also be done on 25 lakhs only unless we know the reason for difference.

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)

11 December 2010 Ur capital gain will be based on indexation, if applicable, on rs. 12 lacs...

And maheshwari sir, this is the common practice adopted by people to avoid stamp duty.. He has paid 25 lacs, but on paper valuation is rs. 12 lacs... What to do...

harish babu

harish babu (Querist)

11 December 2010 sir the difference is to avoid stampduty

Aditya Maheshwari

Aditya Maheshwari (Expert)

11 December 2010 Then 12 lakhs only allowable as deduction.

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