in one of case, party have purchased a land in Rs. 24lakh while Govt. value is 75 lakh.
what amount will be added under the head of purchaser.
Replies (7)
Quick Summary
This discussion addresses a scenario where a property was purchased for £24 lakh, but its government valuation was £75 lakh. The core question is how this significant difference is treated for tax purposes, specifically under Section 56(2)(vii). Participants debated whether the transaction cost or the government value should be considered, with suggestions that the difference might be treated as an unexplained investment and potentially taxable under 'other income'.
It’s always the transaction cost that you have paid. This is because it is first valued at cost then in the next year, it can be valued at either cost or revaluation method