Stcg tax from sale of dda flat

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2012 Hi,
I got a flat from DDA Draw and paid about Rs. 15 lakhs to DDA in March 2012. But the government of Delhi has increased the circle rate of this area to Rs. 25 lakhs however the property rates in this area are very low.
I want to sell this flat in this financial year itself and I am getting just the nominal premium for this flat. My question is :
(1) will I have to pay short term capital gain tax on rs 10 lakhs because Circle rate are higher (25 lakhs) than the DDA rates (15 lakhs) ?
(2) If, in sale deed, I show the value of the flat less than the circle rate, will this be considered as actual sale value or not ?
(3) If I invest Rs 10 lakh in purchasing another house, will the tax be exempted ?
(4) If I give a General Power of Attorney to the purchaser and do the registry after 3 years, will that be ok ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 June 2012 1. If the sale consideration is less than the value adopted by the stamp valuation authority, then the value adopted by the stamp valuation authority shall be taken to be the sale consideration and capital gain shall be computed accordingly.

2. If you invest the amount in a residential house property, then you can claim exemption u/s 54.

3. Even if you give a general power of attorney, the case will be covered under point (1) above.

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