Tax planning on sale of urban land

Save Share

This query is : Resolved

Tribhuvan Aditya Singh (Querist)

13 May 2014 one of my relatives wants to sell his urban land purchased at rs. 10000 before 1981. the buyer is ready to pay 25lakhs (white money) but seller doesnt want to show all 25lakhs in the registry papers for sale of land but ready to pay tax on ltcg as computed on 25lakhs or avail benefit of sec. 54 now my query is that whether he can do registry of value less than 25lakhs and on the other side show in ITR total 25lakhs as sale value???? or is there any other way of tax planning other than sec. 54??

Nikhil Kaushik

Nikhil Kaushik (Expert)

14 May 2014 no. you either pay tax or invest to claim deduction under section 54F/54EC etc.

further, you may show the full value in ITR, however, this would amount to evasion of stamp duty.

Rupesh Jain

Rupesh Jain (Expert)

14 May 2014 pls inquiry the registry value if you transaction value is below the registry value . then ito raise question of sale proceeds then its proceeds u/s 50C.
and you have to pay tax according to stamp duty value.

Tribhuvan Aditya Singh

Tribhuvan Aditya Singh (Querist)

15 May 2014 thnx for ur replies....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now