In 2010 ,I sold land for ₹2600,000 but stamp duty was assessed at 75lakhs. In my income tax return, I declred sale of said land and amount I have actually received ie 26 lakhs. Return was assessed in 2012. Now I received notice from ITD that they want to do reassessment of my return and consider stamp duty as sale value. Can some one please help me what I should do.
As per Section 50C if a property is sold below the Circle Rate, the circle rate of the property would be deemed to be the rate at which property has been sold and capital gains tax would be levied assuming that the property has been sold at the Circle Rate.
Irrespective of the consideration for which the property has been sold, if it has been sold for a price below the Circle Rate, the circle rate would be assumed to be the Sale Price and Capital Gains Tax would be levied.(Income Tax Department is right in your Case)
However, in case the taxpayer claims before the Assessing Officer that the fair market value of the property is genuinely lower than the Circle Rate, the Assessing Officer may request the Valuation Officer to conduct a valuation of the property.
Agreed with Vishal Goel
Thanks CA Goel. Then what will be tax liability on me . will it be 980,000?
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