Capital Gain on Immovable Property

Dear Sir / Madam,

 

An agreement for sale of Land was made in FY 16-17 on Rs 500 stamp paper but the same was not registered also the amount was not received.

Now the both parties are ready to register the same and receive the consideration. As the property is getting registered today Stamp value is to be paid as on todays valuation.

My query is what shall be date of transfer? And can we consider FY 16-17 sale prices as full value consideration or section 50C shall apply considering (todays) stamp valuation at the time of registration?

Replies (1)

The date of transfer will be today. The Stamp Duty Value (SDV) as on today will be considered for considering 50C value. If the consideration was received upto the date of agreement i.e. in FY 2016-17, there would have been a argument considering the SDV to be considered in FY 2016-17 terms.

In your case, consideration is not received before the date of agreement i.e in FY 2016-17, hence SDV and the consideration value as on today will need to be considered for capital gain calculation.

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