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Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2016 I HAVE SOLD A PROPERTY AT SODEPUR, KOLKATA AT RS.43,00,000/- BUT REGISTRAR INCREASED THE VALUATION AT RS.51,00,000/-. PLEASE TELL ME WHETHER THE CAPITAL GAIN IMPACT WILL BE ON RS.43,00,000/- OR RS.51,00,000/- AS DETERMINED BY THE REGISTRAR. MY BUYER IS ALSO ASKING ME WHETHER HE HAS TO DEDUCT TDS ON PROPERTY U/S 194IA. PLEASE ADVISE OR ANY OTHER AMENDMENT THEREON.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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05 May 2016 Capital gain impact will be on Rs. 51,00,000/- as per section 50C unless you object before AO that the valuation made by registrar is more than the market value of property sold. then the AO will refer the valuation to department valuation officer. As far as buyer is concerned tell him that he does not require to deduct TDS as actual sale consideration was less than Rs. 50,00,000/- and section 50C being a deeming fiction does not have any overriding effect on section 194IA. Moreover section 194IA refers to sale consideration which is in your case only Rs. 43,00,000/-.

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