Sale consideration below the market price it treatment

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MANJUNATHA M.R (Querist)
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27 September 2014 Dear Sir actual sale consideration is Rs.60 lakhs but on the sale deed it is Rs.75 Lakhs (as per Market rate) as per the sale deed stamp duty has been paid. my question is that whether we have to deduct TDS @ 1% for Rs.60 Lakhs or Rs.75 Lakhs. Please advise us income tax treatment in this regard. Thanks in advance.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 you need to deduct TDS on the amounts mentioned in the sale deed.

MANJUNATHA M.R

MANJUNATHA M.R (Querist)
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27 September 2014 Ok Nikhilji for which amount Whether for Rs.75 lakhs or Rs.60 Lakhs Please confirm me

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 you only said Rs 75 lakhs mentioned in sales deed. I already answered that sales deed amount is to be used

MANJUNATHA M.R

MANJUNATHA M.R (Querist)
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27 September 2014 Govt Value is Rs.75 Lakhs as per that Party has paid Stamp duty. But transaction consideration is 60 Lakhs. In this case we have to mentioned both the values in the Registration document.TDS is ducut to which amount Whether Rs.75 Lakhs or Rs.60 Lakhs and which is correct as per Income Tax Act and purchase in his It Return which value he is showing. Thanks in Advance Nikhilji

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 you only said Rs 75 lakhs mentioned in sales deed. I already answered that sales deed amount is to be used

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 the AO is anyways going to compute capital gains on Rs 75 lakhs. If you mention both the amounts in the sale deed and deduct TDS on a lesser amount, you would only end up embroiling yourself into tediousness of TDS

MANJUNATHA M.R

MANJUNATHA M.R (Querist)
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27 September 2014 Thank you your valuable reply sir

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 you are welcome......

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