Sale of property

This query is : Resolved

CA Rahul Kumar Saini (Querist)
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31 December 2016 Dear sir,
In case the the market value of the property is below the circle rate, what steps should be taken to sale the property below the circle rate.
so, that the provision of section 50C should not be attracted in which capital gain will levied on such difference in hand of seller and income u/h other sources will be chargeable in hand of buyer.
thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 December 2016 The seller of the property may represent before the ITO that the stamp duty valuation is on the higher side than the fair market value of the property on the date of transfer and the income tax officer may refer the matter of valuation to the dept valuation officer.If valuation by the valuation officer is less than value adopted for stamp duty then such value will be considered for calculation of capital gain.

CA Rahul Kumar Saini

CA Rahul Kumar Saini (Querist)
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31 December 2016 dear sir, what is the procedure to represent before the A.O. before executing the above transaction
thanks in advance.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 December 2016 Draft a letter to the AO requesting him to refer the property for valuation of dept valuation officer, stating the details of the property and hand over the letter. He will take action.