someone has given a land on lease for thirty years. The lessee construct the building on the land and runs the hotel. after approx ten years, the lessor sales the property to the lessee at an" x" amount ( which is more than the dlc rate of land) and receives the same, in the sale deed it is mentioned that since the building was constructed by the lessee so no consideration has been given to the lessor for the same. but the registrar considering the value "y" ,including the building value charges the stamp duty on the amount "y". Now while calculating the capital gain tax which value should be taken in consideration "X" or "Y"?
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Capital gain tax liability
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Hi Manish
In this case, since the building doesn't belongs to lessor, so the question of capital gain on building in the hands of lessor will not arise. Only capital gain on sale of that land will be taxable.
Since the Stamp duty value (Y) includes stamp duty of both land and building, in my opinion that stamp duty should be bifurcated using current stamp duty value of land and building. thenafter the portion of stampduty of land should be compared with the actual consideration, and applicability of sec 50 C should be considered at that time to arrive at Full value consideration of that land.
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