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Capital gain

Tax queries 123 views 1 replies

RAKESH R AGRAWAL

ARTICLE

29 Points Joined July 2016

Respected members,

I would like to know whether capital gain tax is applicable or not in this case. Suppose owner of the home gave it on rent before 25 years.after the death of owner their nominees became the owner. Now tenant is not vacanting the home as under tenancy right. So assesse transfer the property (home) to tenant at a very low price compare to fair value or market value..also cost of property is nt ascertained as it was purchased by forefathers. My question is that whether assesse is liable to capital gain considering the zero cost of purchase and sales/settlement with the tenant at a very low price which is less than fair value or market value..?if yes then the what will be value of consideration? Is it fair market value or actual consideration?

Assist me.. Thanks..

Replies (1)

Divakar agarwal

Student

247 Points Joined May 2016

In this case determine the FMV of 2001 and this will be the cost of acquisition and sale consideration will be the actual sale consideration thus there will be the LTCL if cost of flat is more than actual sale consideration.

Also there will be income under IFOS head u/s 56 (2) in the hands of tenent on difference between the fmv and actual sale consideration as immovable property were acquired at lower then the FMV.