Capital Gain on Sale by Bank Public Auction
This query is : Resolved
25 September 2020
Hi,
My query is as under:
Mr.ABC had mortgaged his residence in Mumbai to a Bank. Upon default the bank took possession and has Auctioned his property by public auction.
Value of the residence as per Ready Reckoner: Rs.3.50 cr
However the bank auctioned the property at much lower value of: Rs.2.75 cr
It is clear to Mr.ABC that he will have to pay LT Capital Gain on this sale. However the Sale consideration for the purpose of Capital Gain should be taken as RR vale (3.50 cr)or Auction value (Rs.2.75 cr).
If Auction value is acceptable, under what provision can he claim this reduction in sale value.
Please advise.
Thank You
My query is as under:
Mr.ABC had mortgaged his residence in Mumbai to a Bank. Upon default the bank took possession and has Auctioned his property by public auction.
Value of the residence as per Ready Reckoner: Rs.3.50 cr
However the bank auctioned the property at much lower value of: Rs.2.75 cr
It is clear to Mr.ABC that he will have to pay LT Capital Gain on this sale. However the Sale consideration for the purpose of Capital Gain should be taken as RR vale (3.50 cr)or Auction value (Rs.2.75 cr).
If Auction value is acceptable, under what provision can he claim this reduction in sale value.
Please advise.
Thank You
25 September 2020
See the link.
Adopt public action value for stamp duty.
https://www.mondaq.com/india/trials-appeals-compensation/805500/guidelines-for-determination-of-market-value-for-computing-the-stamp-duty-on-a-sale-certificate-bombay-high-court
Adopt public action value for stamp duty.
https://www.mondaq.com/india/trials-appeals-compensation/805500/guidelines-for-determination-of-market-value-for-computing-the-stamp-duty-on-a-sale-certificate-bombay-high-court
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
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Treatment of Pension ?annuity returns on PMVY
- Soyabean hsn code and gst rate
- Regarding IMS Mandatory from 1st July 2026
- Last year TDS Claim
- LTCG on switch of units
- Salary and pension received from Asian Development Bank
- Short Term Capital gain on shares bought and sold after 2018 onwards
- One Post a Week Done Right Beats Seven Done Wrong
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR 2 Short Term gain & Long term gain
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
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
