How will ito treat this situation ?

361 views 4 replies

One of my uncle purchased a plot in rural area 25 years ago . Till now there is a no devlopment . He purchased that plot for rupees 50000 . Plot size was 3200 sq feet . Now he decided to sell his plot for rupees 1 lakh but according to govt guideline plot cost will reach beyond 4 lakh .

I am interested in that plot and want to buy that . But respected experts , i have a quarrey ...

If i purchased that plot in 1 lakh by giving cheque to him . Then how ito will trat the difference amount ( 400000 - 100000 = 300000 ) . He is in need thats why he is seeling . i Have some amount then i am interested in buying ... Am i right ? Can i enter in this deal . if i enter then what will be response from ito ? if ito will also add the difference amount ( 3 lak ) in my income then will it be right ? Please suggest the right way ...

Replies (4)

Since u say such plot is situated in rural area (please read the definition of rural area), then CG is not taxable in the hands of the seller, as such asset is not regarded as capital asset. Hence there may not be any tax liability even to the buyer for inadequate consideration.

Respected poorniam ji :: I think , The area which is situated very far from city or urban area or outside muncipal corporation boundry , where Panchayati raj works called Rural Area . The plot is also situated very far from city , outside muncipal corporation boundary and also where there is a plot , panchayati raj works . Panch and sarpanch are there .

Now , is that plot in rural area ? if yes then , can i buy that plot for rupees 1 lakh which is less than govt guideline rate ?

Yeah, u can buy it if u r sure that the plot is in rural area in which case there will not be any taxability on account of inadequate consideration in ur hands. Utility to check whether urban area: https://www.incometaxindia.gov.in/Pages/utilities/Agriculture-Land-in-Urban-area2014.aspx.

according to link provided by you , i checked and it is showing that my land is an agriculture land .

thank you so much for your kind response poornima ji . Your are the reason for my today's smile . thank you .

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 July 2026
Articles

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details