Will Sec 50C of Income tax Act is Applicable or not

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This discussion explores whether Section 50C of the Income Tax Act applies to a flat purchased through a bank auction under the SARFAESI Act. The central question is whether the 'market value' for capital gains tax purposes is the auction purchase price or the subsequent sale price, and if the auction sale itself exempts the transaction from Section 50C provisions.

Jay Chitroda

Jay Chitroda (Querist)
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03 April 2024 Mr. A has bought a flat in an auction from a bank under the SARFAESI Act 2002. Mr. A is selling that flat with a market value of 2 crore and a buying value of 1.50 crore.

The question is: Will Section 50C of the Income Tax Act be applicable to Mr. A

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 April 2024 you need to draft your question with more clarity. Buying value or selling value?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 April 2024 Section 50c not applicable for auction sale.
https://taxguru.in/income-tax/sec-50c-not-applies-to-distress-sale-of-land-to-govt-company.html

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 April 2024 Seetharaman ji. He bought the flat in auction. But from his message it seems, that he is selling it later on! so not sure auction sale part is relevant anymore.

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