banner_ad

Consideration on sale of property through agreement

Tax queries 327 views 6 replies

A commerical property (shop) was purchased for Rs. 50,000.00 through agreement in 1985-1986. The said property was sold in 2016-17 for Rs. 5,00,000.00 through agreement. How the income from it will be calculated and under which head it will be assessed? Please advise.

Replies (6)

Under capital Gains............ long term capital gains to be assessed after indexation of purchase price......

Sir, does it matter that property was not registered nor at the time of sale or purchase? Do we need to consider the FMV or the value as per the agreement only?

For computing of capital gains tax arising from sale of land and/ or building the consideration if the agreement or the valuation adopted by the stamp duty authority whichever is higher is taken as full value of consideration. It does not matter whether the property is registered or not

Practically, the purchase value will be accepted because of possesion of the shop in your hand for almost 30 years.

But the sell will not be complete without registration (because registration mandatory as per the transfer of property act). And hence the sell value will be considered as per circle rate, and not as per agreement value.

Sir, but there was no registry neither at the time of purchase nor at sale. As for treating sale, registry is necesary,  a view is there that do we consider it in income or not? Should we consider the circle rate (higher than the agreement) ourselves or discharge the liablity on agreement amount? Please guide.

Transfer of any property is not complete in eye of law unless it is registered with registrar with due stamp duty paid......

For taxation part it is transfer of capital assets.......... so the gain will be capital gain and not just revenue/ income.....

In all the cases....... IT department will take circle rate for gains calculation...... so, better discharge duty as per circle rate....


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details