Capital gains

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devansa (Querist)

30 August 2016 In the case of sec.50C the seller is going to be charged Capital gain tax for different amount. Again for the said amount the purchaser is directed to pay the tax u/s 56(2) . In other words the same amount is taxed twice which is aganist natural justice . Please clarify and supply the case laws if any aganist the proposed levy of tax u/s 56(2).

Amol S Joglekar

Amol S Joglekar (Expert)

30 August 2016 50C is for seller
56(2)(vii)(b) is for buyer

what is the query now?

devansa

devansa (Querist)

31 August 2016 Under section 50C seller is taxed for an amount on stamp duty value if sale consideration is less than stamp duty value. That means, the seller is going to pay tax on even the difference between amount of stamp duty and sale consideration. And the purchaser has to pay tax on that difference as Income from other sources. It is being taxed twice in this case. So please clarify in this regard and provide me with case laws if any.

Amol S Joglekar

Amol S Joglekar (Expert)

31 August 2016 yes, but what is there against natural justice......both the parties to the transaction are taxed....especially so when both are entering into a transaction which is less than the stamp duty value....... So? it is not against natural justice

(See in genuine cases of the properties not able to fetch the stamp duty value, the seller can go for ADJUDICATION and then 50C does not come into play0

devansa

devansa (Querist)

31 August 2016 Thanks for your reply sir, since both seller and buyer are paying tax is it possible that any one of them can avoid tax?

Amol S Joglekar

Amol S Joglekar (Expert)

31 August 2016 No...the sections are clear.... both the parties to the transaction should suffer...that seems to be the principle.

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