Income tax on new land & building purchase

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2014 I HAVE PURCHASE A LAND & BUILDING OF PURCHASE/ PAYMENT VALUE RS.80,00,000.00 DT: 14-08-2013 AND GOVT. ASSESSED VALUE IS RS.1,00,00,000.00 STAMP DUTY PAID ON GOVT. ASSESS VALUE RS.1,00,00,000.00 SALE DEED REGISTERED ON 14-05-2013. NOW I PAY THE INCOME TAX ON EXCESS ASSESS VALUE OF GOVT. OF RS.20,00,000.00 PLEASE HELP ME FOR MY INCOME TAX RETURN

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 August 2014 in case of purchase there is no income tax applicable

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 August 2014 well please refer section 56(2)(vii)(b) which states that where any immovable property is received for a consideration which is less than the stamp duty value by an amount of Rs 50 thousand, the difference between the stamp duty value and the actual consideration shall be taxed as income from other sources.

So yes, you need to pay tax on the differential value!!!

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