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Capital gain charge on market value or sell value?

Tax queries 751 views 2 replies

nitin

back offi

25 Points Posted on 25 September 2010

I was bought a flat in 2003-04 total cost including stamp duty Rs. 2,60,000. today guidline of my flat (market value as per registrar/govt) is 9,50,000, and i sold my flat to party in just 8,00,000. but today at the time of registry of flat we will paid STAMP DUTY on 9,50,000 this is ok, but i sell my flat in 8,00,000 Rs. which will mention in registry. so market rate is 9,50,000 and selling rate is 8,00,000 so please tell me what is my capital gain :- 950000-260000 or 800000-260000. and also i want to know that if stamp duty,legal fee,brokrage paid by me again when i sell flat, all this deduct in my capital gain (eg. - LTCG=(800000-260000)-stamp duty etc)

Replies (2)

JINESH SHAH

PRACTICING CA

151 Points Posted on 25 September 2010

Rs. 800000 will be considered for capital gain.. u can also deduct stamp duty n other related expenses form 800000. Also take indexed cost of Rs. 260000 for calculating capital gain.

Manoj BG

Tax Professional and in Service

1795 Points Posted on 25 September 2010

HI DEAR,

JINESH IS ABSOLUTELY RIGHT. IF THE ACTUAL SALE CONSIDERATION IS LESS THAN FAIR MARKET VALUE ADOPTED BY STATE AUTHORITIES FOR THE PURPOSE OF STAMP DUTY VALUATION, THEN VALUE ADOPTED BY STAMP DUTY AUTHORITIES WOULD BE DEEMED TO BE SALE CONSIDERATION U/S 50C.

REGARDS,

MANOJ