Capital gain
This query is : Resolved
10 October 2011
Dear Expertji,
My client is a salaried employee. In AY 2010-11 He filed his return of income showing Income from Salary and other sources.
In the said assessment year He sold Ancestral Plot of land jointly owned by his family. There are 7 beneficiary in the property. Total sale consideration of the property was Rs. 60 lakhs. He received Rs.100000/- as his share as reflected in Sale Deed. Govt Valuation of the Property was Rs.1.28 Cr.
Now he has received notice for assessment, hence how to pay tax on the above transaction. Is there any other consequences for not showing this transaction in the IT Return? How to present the case?
My client is a salaried employee. In AY 2010-11 He filed his return of income showing Income from Salary and other sources.
In the said assessment year He sold Ancestral Plot of land jointly owned by his family. There are 7 beneficiary in the property. Total sale consideration of the property was Rs. 60 lakhs. He received Rs.100000/- as his share as reflected in Sale Deed. Govt Valuation of the Property was Rs.1.28 Cr.
Now he has received notice for assessment, hence how to pay tax on the above transaction. Is there any other consequences for not showing this transaction in the IT Return? How to present the case?
10 October 2011
As per section 50C it is the stamp value that is taken as consideration and capital gain is computed accordingly.
Now u can claim before AO that due to factors like joint family property , family dispute etc the property was sold for lower value and ask for reference to DVO under section 50C(2)
Explain these circumstances to DVO and try to get the DVO valuation as near as possible to your value of 60L
CA MANOJ GUPTA
JODHPUR
09828510543
Now u can claim before AO that due to factors like joint family property , family dispute etc the property was sold for lower value and ask for reference to DVO under section 50C(2)
Explain these circumstances to DVO and try to get the DVO valuation as near as possible to your value of 60L
CA MANOJ GUPTA
JODHPUR
09828510543
10 October 2011
Here's a tip for you..
If you can prove to the satisfaction of the AO that the sale of property and subsequent distribution of sale proceed was to settle continuous friction (dispute) and to bring peace among family member, hence would not be considered as transfer. Therefore, no capital gain will arise.
CIT v. A.L.Ramanathan(2000) Madras HC
If you can prove to the satisfaction of the AO that the sale of property and subsequent distribution of sale proceed was to settle continuous friction (dispute) and to bring peace among family member, hence would not be considered as transfer. Therefore, no capital gain will arise.
CIT v. A.L.Ramanathan(2000) Madras HC
11 October 2011
The facts of the A L Ramanathan case are totally different and will not apply to the case here
In that case the properties were transfered among family memebers pursuant to a family arrangement
In that case the properties were transfered among family memebers pursuant to a family arrangement
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- EXPORT COMMERCIAL INVOICE HSN CODE
- Cash balance limit and property purchases limit
- FCRA 6 E- Intimation
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- GST not cancelled by tenant
- FORM 141 SDV query
- Filling ITR - U
- Form 140 tds
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
