Capital gains- applocability of 50c

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HUSSAIN DAWOOD KAPASI (Querist)
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18 December 2015 One of our client has purchased a flat for an actual cost of Rs.27 lacs however its stamp duty value is Rs. 55lacs.

He however sold the flat in a year for a consideration of Rs.35 lacs and stamp duty value came down to 44 lacs.

So shall i compute the capital gains as per actual prices or as per Stamp duty value.
As if i take cost of 27 lacs and sold for 35 lacs is a capital gain,
Whereas if i consider 50C stamp duty value it comes to capital loss.

please help

Ankur Singhal

Ankur Singhal (Expert)
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18 December 2015 Dear
You have to Take Stamp duty value for the calculation of the Capital gain.

When you calculate the capital gain the basis for calculation is always the registery of the property.
So take the SDV given in purchase deed and sale deed.

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HUSSAIN DAWOOD KAPASI

HUSSAIN DAWOOD KAPASI (Querist)
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18 December 2015 Hello Sir,
So do you mean that i shall take 55 lacs purchase cost and selling cost of 44 lacs . Irrespective of what he has paid or recieved.

HUSSAIN DAWOOD KAPASI

HUSSAIN DAWOOD KAPASI (Querist)
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18 December 2015 Hello Sir,
So do you mean that i shall take 55 lacs purchase cost and selling cost of 44 lacs . Irrespective of what he has paid or recieved.

As if it is so , it will result in short term loss and saves his tax.
And i presume that 50C is taken only on sales consideration purpose and not for calculating the purchase cost.

Ankur Singhal

Ankur Singhal (Expert)
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18 December 2015 TAke purchase cost 55lakh.
and sale price 35lakh.

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