Long term capital gains

This query is : Resolved

varun mech (Querist)
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09 April 2019 Sir i bought a piece of plot for 722300 eight years back and spent about 700000 for the building which is under constructed due to promoter problem.i recently sold the plot along with under constructed building for total sale consideration of 2800000.But the buyer registered it only as a plot by paying 1400000 as stamp duty.Balance 1400000 he gave it to me as cheque but not mentioned in registration.I used the entire proceeds to buy a new property.My problem is while filing it in ITR FORM2 under long term gains can i mention full sale proceeds as 2800000 which is more than registered value of 1400000 or i can only claim 1400000 as sale proceeds which is mentioned in document and balance as income from other sources and pay 30 percent tax on it.Kindly help me.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 April 2019 It seems that Rs 700000/ on construction have also been spent 7-8 years back.
To my view, this may be a case of under valuation from the point of view of a stamp valuation officer but from the income tax point of view you have to show Rs 28.00 lac as sales consideration of the under construction property.
Against 722300 Land and 700000 Construction cost you can take indexation benefit.
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You can make an agreement in writing for selling the under constructed property by mentioning clearly the sales consideration of land as 14.00 lac and for others 14.00 lac.
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