Sale price of property

Singh Kamboj (342 Points)

30 May 2021

one person sold his residencial plot amounting to rupees 6 lakh but sale deed executed only 4 lakh as per govt rate. so question is which sale price is consider for the purpose of calculating long term capital gain.

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12 Replies

Gagan Gupta (Chartered Accountant) (161 Points)
Replied 31 May 2021

Sale deed executed for only Rs. 4 Lacs. sale price would be 4 Lacs only.

Sourav (Student) (23973 Points)
Replied 31 May 2021

4 lakhs rupees shall be considered as it is shown in deed executed

Singh Kamboj (342 Points)
Replied 31 May 2021

Ok sir thanks a lot

Sourav (Student) (23973 Points)
Replied 31 May 2021

your welcome for response

Sivaramaraju G (Learner) (2369 Points)
Replied 31 May 2021

Deed price need to be taken.

CMA Poornima Madhava (CMA) (13082 Points)
Replied 31 May 2021

If value as per sale deed is the consideration for computation of LTCG, then what will happen to additional 2 lacs that has been received?

RAJA P M ("Do the Right Thing...!!!") (115608 Points)
Replied 31 May 2021

Yes... I am also with Mrs CMA Poornima Madhava...

If the amount received through banking mode then it's falling under illegal transaction. Also it's questionable in income-tax.

Sivaramaraju G (Learner) (2369 Points)
Replied 31 May 2021

If the transaction has been carried through banking then they have to show 6L as sale consideration.
government value will be the minimum price to offer.

CMA Poornima Madhava (CMA) (13082 Points)
Replied 31 May 2021

If the transaction (receipt of 6 lacs) has not been carried through bank, then can 4 lacs be considered as sale consideration?

RAJA P M ("Do the Right Thing...!!!") (115608 Points)
Replied 31 May 2021

Yes...
if seller will show cash amount also sale amount then no more problem.
If seller not like then he is the responsibility for the transaction and it's related activities...

CMA Poornima Madhava (CMA) (13082 Points)
Replied 31 May 2021

Here the querist has specifically mentioned that the property is sold for 6 lacs. So in that case, 6 lacs can ONLY be the sale consideration whether received in cash or through bank. Further, accepting cash would lead to violation of provisions of section 269SS and 100% penalty will be levied.

So in the above scenario, I don't think considering 4 lacs as sale consideration is legally correct.

Ritik Chopra (student) (8093 Points)
Replied 02 June 2021

According to me ₹600000 shall be considered as Sale consideration. If ₹4,00,000 is taken as sale consideration then Rs 200000 would be considered illegal.