Mohit Bothra (Service) (58 Points)
19 April 2013Dear All,
If someone purchases an immovable property for a consideration which is less than the market valuation by stamp authorities. The same differs by more than 50,000/-. What is the tax implication in the hand of the purchaser??
Thanks & Regards
MR. R....halpfull hand is back
(.)
(297 Points)
Replied 19 April 2013
hi mohit,
If any one purchase immovable property in less prise then the stamp valuation then no tax liability arise at that time but when he sale the property in future while calculating indexation then calculation must be on purchase price so the valuation goes down and tax goes up
Ex on 1991 stamp value of x property is 500000 but i purchase in 300000 and sold it in 2012 in 2500000 lac.
So while computation of index
(852/182)*300000=1404395 then my LTCG is 2500000-1404395 =1095604*.20 =219120
(852/182)*500000=2340659 then my LTCG is 2500000-2340659 =159341*.20 =31868
Now u clearly show the difference in future tax
Mohit Bothra
(Service)
(58 Points)
Replied 19 April 2013
As far as my knowledge is concern, this budget introduces a section - 56(vii) regarding the same, so need clarification on the same section along with its loopholes.
Amber Jain
(Article Assistant)
(206 Points)
Replied 27 May 2013
As per Sec 50C of IT Act the stamp duty which will be applicable will be the Fair Market Value i.e. as per Guildelines whatever will be the rate per sqft the stamp duty will be charged on the same irrespective whether you have purchased in less amount.
CAclubindia
