INCOME TAX ON CIRCLE RATE
This query is : Resolved
23 January 2010
HI,
GREETINGS OF THE DAY,
MY CLIENT WANTS PURCHASED A PLOT FROM MR A @ 4000/- PER SQ.MTR. THE PLOT ALLOTED TO MR A BY HSIIDC .
MY QUERRY IS THE CIRCLE RATE IS IN THAT AREA OF RS 6000/-. MY CLIENT IS AGREE TO PAY STAMP DUTY ON CIRCLE RATE i.e. RS 6000/- AND ACTUALLY HE IS PAYING FOR PLOT 4000/- PER SQ. MTR.
ONE OF CA TOLD MR A THAT THE DIFFERENCE BETWEEN 6000/- TO 4000/- OF RS 2000/- WILL BE ASSUMED AS GIFT AND MR A WILL BE LIABLE TO PAY INCOME TAX ON 2000/- PER SQ. METER.
IS IT RIGHT OR WROUNG PLEASE
THANKING YOU IN ADVANCE.
GREETINGS OF THE DAY,
MY CLIENT WANTS PURCHASED A PLOT FROM MR A @ 4000/- PER SQ.MTR. THE PLOT ALLOTED TO MR A BY HSIIDC .
MY QUERRY IS THE CIRCLE RATE IS IN THAT AREA OF RS 6000/-. MY CLIENT IS AGREE TO PAY STAMP DUTY ON CIRCLE RATE i.e. RS 6000/- AND ACTUALLY HE IS PAYING FOR PLOT 4000/- PER SQ. MTR.
ONE OF CA TOLD MR A THAT THE DIFFERENCE BETWEEN 6000/- TO 4000/- OF RS 2000/- WILL BE ASSUMED AS GIFT AND MR A WILL BE LIABLE TO PAY INCOME TAX ON 2000/- PER SQ. METER.
IS IT RIGHT OR WROUNG PLEASE
THANKING YOU IN ADVANCE.
23 January 2010
The CA is right. Refer section 56 of the I. Tax Act with latest amendment effective from 1-10-2009.
23 January 2010
That CA is right. Your client ( Purchaser ) will be taxed u/s 56(2)(vii) under "Income from other sources" for the difference of Rs.2000/- per sq.ft . Mr.A ( seller) will be taxed u/s 50C for capital gains for value of stamp duty as full value of consideration of plot sold i.e @ Rs.6000/- per sq.ft
Rgds
CA Amitabh Gupta
Indore
ag_ind@rediffmail.com
Rgds
CA Amitabh Gupta
Indore
ag_ind@rediffmail.com
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