If 'A', Madurai, prefers to sell his immovable property at a lower price than the assessable value determined by GOVT authorities, i. e. less than the guideline value to his non-relative "B", Chennai.
I understand that “A” & “ B” both have to pay income taxes
a) A has to pay capital gain tax on the deemed income ie. Guide line value determined u/s 50(C) and
b) B has to pay taxes on the difference between the assessable value determined by the govt and registered value under the head Income from other sources.
My doubt is
If “A” sells his immovable property for NIL VALUE, it is also less than the guideline value. However, as previously stated, “B” has to pay tax under the head Income from other sources. Please advise as to whether “A” is required to pay capital gains on the deemed income as described.
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