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Computation of capital gains

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Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2017 Sir,

I would like to know which amount is taken as cost of acquisition in case of land or building if the purchase consideration paid is less than the market value at the time of purchase of the property?

Expert : Anonymous

Expert : Anonymous (Expert)

07 May 2017 Purchase Value Or Stamp Value whichver is higher

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2017 Sir,
If the sale consideration (paid at the time of purchase) is less than the stamp value,will it not be a loss to revenue while computation of capital gains tax?

Expert : Anonymous

Expert : Anonymous (Expert)

07 May 2017 Sorry i mis interpreted the ques i thought u asked about sale consideration. Cost of acquisition is purchase price only. If you purchare property before 1.4.1981 then it is purchase price or fair market value w.e. is higher. After 1 April 2017 if asset purchased before 1.4.2001 then cost of acquisition is higher of purchase price or Fair Market Value on 01.04.2001.

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