Capital gains 50c

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janaki suresh B (Querist)
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06 December 2011 Dear Friends

as per Section 50C if the sale consideration received is lower than value adopted by stamp valuation authority then the value taken by them shall be sale consideration. my doubt is in case of joint development of apartments the land owned may received the sale cosideration more then one year. suppose in such case the guideline value may be lower in first year and higher in second year.
if you sale consideration for Two year futtogether is more then Stamp duty value adopted, but lower in first year.
What will be sale consideration to be taken for first (whether original sale consideration or Value adopted by stamp vaulation authority)?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 December 2011 Let us discuss with an example.

The total sale consideration is Rs. 1 crore.

The value adopted by stamp valuation authority is Rs. 75 lakhs.

The assessee receives Rs. 50 lakhs in FY 11-12 and Rs. 50 lakhs in FY 12-13.

Capital gain is chargeable on accrual basis. This means that the whole amount of capital gain is taxable in the year of transfer. This is irrespective of the fact whether full payment has been received or not.

So, the full amount of sale consideration of Rs. 1 crore shall be chargeable to capital gain in the FY 11-12 itself, even though the assessee has received only a part of the sale proceeds.

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