Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

50c capital gain

28 January 2014

property purchased in 2001 rs. 915000 property sold in 2007 rs 25,00,000/- (as per sale deed rs. 25,00,000/- but actual sale for rs. 3,20,00,000/-) case is in scrutiny, A.O. told us paid tax on 3,20,00,000/- less indexed cost of rs. 915000/- what is the remedy available to save tax?

Reply
Follow
Share

4 Replies

(Guest)

How did the Ao know of the real consideration?

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 29 January 2014

can you please provide stamp duty valuation and fair market value as on date of sale ?

Arpit Pachisia (CA) (734 Points)
Replied 29 January 2014

hello,

Valuation by the stamp duty valuation authority is based on the circle rates. These circle rates adopt uniform rate of land for an entire locality. Even in particular area, on account of location factors and possibility of commercial use, there can be wide variations in the price of land. So that will be handy to say that you had sold the property for Rs 25,00,000 instead of Rs.3,20,00,000 which they calculated on the basis of circle rates or from somewhere.

thank you

CA Hardik Bunha (self) (2121 Points)
Replied 30 January 2014

For madhvi pandit read section carefully, this kind of cases selected by AIR. For siddi stamp duty valaution 3,20,00,000/- fair market value 3,00,00,000 For arpit pachisia Still it is remedy?