Sale consideration capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2015 Please advice on amount of sale consideration allowed for capital gain exemption.

unregistered sale deed executed and sale consideration received Rs 15laks on sale of land. the government registered document for sale of the same property is at guidance value of Rs 10 laks at insistence of buyer. the assesse wants to claim the actual sale consideration received in cheque for capital gain exemption i.e Rs 15laks. can unregistered sale deed be used to convey transfer of property and receipt of sale consideration & for claiming capital gain exemption? please quote relevant case laws if applicable.

thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 January 2015 The assessing officer, in fairness, is expected to treat the extra amount offered as part of the sale proceeds to be eligible for capital gain exemption. However, if the purchaser denies the extra payment and the assessing officer believes him, the extra amount admittedly received may be taxed as income from other sources.

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2015 thank you for the response, are there any case laws on this matter or do the sections clarify any position? pls advice on any additionl documentation. should any additional document be sought from purchaser? would bank statement be sufficient proof showing cheques received?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 January 2015 In absence of any material to effect that assessee had received any amount over and above value on which stamp duty was payable, Full value of consideration would be the value adopted for purpose of stamp valuation. [ITO v. Ms. Namita Singh 15 taxmann.com 19 (ITA T-D elhi) [2011]].

Get a confirmation letter from purchaser mentioning amount and cheque No.

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