Value of property in capital gain

Save Share

This query is : Resolved

Quick Summary

Selling property below market value can trigger tax issues. Under Sec 50C, seller is taxed on stamp value; under Sec 56(2)(x), buyer is taxed on the difference. Proper valuation and CA advice are recommended.

binu sukumaran

binu sukumaran (Querist)
Follow

21 April 2026 Sit.
One of my friend has a property in cochin, she has plan sell property her distant relative 1.1 Cross to 1.25 Cross.
Currently market value is 1.5 Cross.
Let's me know, whether ,it make any problem to sell her distant family member to 1.1 Cross said property.
Please advise

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

21 April 2026 Selling the property at ₹1.1 Crore when the market value is ₹1.5 Crore will trigger Section 50C for the seller and Section 56(2)(x) for the buyer. The seller will be taxed as if they sold it for ₹1.5 Crore, and the buyer will be taxed on the ₹40 Lakhs difference as additional income. It is highly recommended to consult a Chartered Accountant to evaluate the property's actual valuation report before proceeding.

binu sukumaran

binu sukumaran (Querist)
Follow

21 April 2026 Sir.
Thanks for valuable information.
With regards
Binu

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!