Assets sold less than market value

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538 Points Joined October 2020
Sir I sold house property less than market value (long term capital gains). How I pay income tax - I consider actual sales price or market value for calculation of profit. pls
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On 29 October 2024 at 19:22 Report
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Master in Accounts & high court Advocate
9456 Points Joined December 2011

For calculating long-term capital gains tax, you need to consider the higher of the two values: the actual sale price or the market value of the property.

 Long-term capital gains tax is calculated as follows: - Fair Market Value (FMV) - Cost of Acquisition (COA) = Long-term capital gains - FMV is the higher of the actual sale price or the market value of the property If you sold the property for less than the market value, you will still need to consider the market value for calculating the long-term capital gains tax.

 For example: -

 Actual sale price: ₹80 lakh - Market value: ₹1 crore - COA: ₹60 lakh In this case, the long-term capital gains would be: - FMV (�1 crore) - COA (�60 lakh) = ₹40 lakh

You will need to pay long-term capital gains tax on ₹40 lakh. However, if you sold the property to a relative or a specific person as per the Income-tax Act, 1961, you may need to consider the actual sale price for calculating the long-term capital gains tax. 

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On 29 October 2024 at 19:30
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538 Points Joined October 2020
Thanks Sir
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On 29 October 2024 at 23:19
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28009 Points Joined May 2017
No there is an anamoly. Blood relation there is no tax
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On 31 October 2024 at 07:41


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