Deemed income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2013 As per finance Act difference between the valuation determined adopted by registrar at the time of registration and sale vale of property will be taxed as deemed Income. Please advise whether that deemed income can be set off against investment made in another house property?

Guest

Guest (Expert)

25 May 2013 I think you are asking about Section 50C.
yes in that case stamp duty value become the net consideration, and the capital gain is calculated taking that stamp duty value as consideration.

A person can invest such capital gain to claim exemption u/s 54/54F

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Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2013 House property was sold in F. Y. 2013-2014 for Rs.15.00 Lacs. But the market value for stamp duty purpose was Rs.30.00 Lacs. Whether the difference of Rs.15.00 Lacs (market value less sale value) is allowed to set off against the cost of new house property. If yes please tell me about the section or case law for the same that deemed income is allowed to be adjusted against the investment made tax savings schemes.

CA Harish Suwalka

CA Harish Suwalka (Expert)
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25 May 2013 Why always you need to cite case law if the law is clear enough to follow,

50C does not states about any deemed income, it just states that if an assesse sold his property below the value used for tamp duty purposes, than such value would be used as sale consideration rather than the actual one.

so the capital gainwill be calculated with that value used as consideration.

section 54F/54 provides certain deduction from LTCG.
where is the confusion.

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