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Direct tax query

Tax queries 600 views 7 replies

patterson thomas

cs student

53 Points Posted on 20 May 2014

if Mr X bought a house for 10 lac on 3rd oct 2013 whose stamp value determined is 15 lac, and then sold it to Mr Y for 20 lac. on 1march 2014.... PLZ ANYONE CAN EXPLAIN ME HW IT WILL BE TAXABLE AND UNDER WHICH HEAD ??

Replies (7)

caaspirant

349 Points Posted on 20 May 2014

Capital gain.....short term.....cost of acquisition 15 less sale value 20 gain 5 . Taxable at normal slab rates. No exemptions.

caaspirant

349 Points Posted on 20 May 2014

Sorry cost will be 10 gain =10.

caaspirant

349 Points Posted on 20 May 2014

If 5 is taxed as income from other sources due to purchase of immovqble property for inadequate consideration than coa will be taken as 15 so 15 is correct :D

Income Tax Wala: (Fin. Expert)

Chartered Accountants

2015 Points Posted on 20 May 2014

sections 50 C, 56 (2) (vii) b

initially at the time of buy on 3rd october 2013 following personal would be liable to pay tax

Buyer Mr. X u/s 56 (2) (vii) b Rs. 5 Lac

Seller u/s 50 C Rs. 5 LAc

at the time of sale on 1/03/2014 there is STCG Rs./ 5 LAc is there hence taxable in hand of Mr. X only.

Rahul

owner

91 Points Posted on 20 May 2014

i also agree with tax pandit ji

patterson thomas

cs student

53 Points Posted on 21 May 2014

it means 5 lac under ifos,and 5 lac under stcg would be the tax liabilty for mr x....?

akshan

article

21 Points Posted on 21 May 2014

As per section 56 (2)(vii) income from other sources is 5 lacs in hands of mr. X and As per section 49 (4) cost of acquisition will be the fmvtaken under consideration for this case I.e the fmv. Then on sale stcg for mr.x will be rs. 5 lacs..