Capital Gain Tax

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I have sold my house property on 09.04.2009 for Rs. 39.45 Lac(actual consideration as per sale deed). However, the transaction value, as fixed by Registering authority, of the same is Rs. 62.88. The indexed cost works out at Rs. 23.10 Lac resulting into capital gain of Rs. 39.78 Lac (Rs. 62.88- Rs.23.10). I have purchase one residential house for Rs. 22.00 Lac. For the balance capital gain (Rs. 39.78-Rs.22.00). Can i purchase bonds u/s 54EC so that the capital gains is NIL. I think, it is not possible because Rs. 62.88 Lac is deemed consideration whereas actual consideration is Rs. 39.45 Lac. Investment could be upto actual consideration only. Therefore, We will have to pay Capital Gains tax on Rs. 23.43 Lac (Rs. 62.88 Lac - Rs. 39.45 Lac). Please enlighten me.

Replies (1)

Mr. Gourav Jain

You are catched under the clutches of section 50C of Income-tax Act, 1961.  You should have disputed the value before the authorities. Now it is high time.

Best Wishes

Sathikonda


CCI Pro

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