Section 56(2)(viib)

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Guest

Guest (Querist)

05 June 2014 Dear Expert,

As per section 56(2)(viib) of the Income tax act, 1961, where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009 any immovable property,—
(i) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;
(ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration
are to be considered as income of such individual or HUF.
My Question is that if the said property is disputed (i.e. tenants do not vacate the property) and seller sells the property at a price lower than SDV, then what will be the tax implications ?
Pls suggest any case law.

Amol S Joglekar

Amol S Joglekar (Expert)

05 June 2014 some confusion???? 56(2)(viib)isfor company.... is it 56(2)(vii) (b)....

Guest

Guest (Querist)

05 June 2014 Sorry sir,

Its 56(2)(vii)(b)

Amol S Joglekar

Amol S Joglekar (Expert)

05 June 2014 Please get the stamp duty adjudicated with the Registrar of Stamp. If he does so, your purpose is served......Unfortunately no case law is available in your favour under the present scenario

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Nikhil Kaushik

Nikhil Kaushik (Expert)

06 June 2014 doesn't help much as stamp valuations have been very straight-jacketed and so are the tax laws for the capital gains.

please refer this article written by Gautam Nayak (a renowned tax expert) to understand that its not gonna be an easy task:

https://www.livemint.com/Money/Thui7higebdns5nJdM8EKK/Tax-on-purchase-of-immovable-property.html

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