Hello,
I have purchased one property through bank auction at 30 lacs (cheap price due to risk involved in the auctions) whereas the circle rate of the property is 55 lacs. I even gave the stamp duty at circle rate of 55 lacs while buying from the bank auction.
Now I am selling this property to a buyer at 45 lacs after 9 months. Again the circle rate remains the same at 55 lacs and the buyer paid stamp duty at 55 lacs(circle rate) although buying price was 45 lacs.
Mind u circle rate is high of this area as compared to actual transaction value.
My question is that do I have to pay capital gain tax at :-
1) 45 lacs (actual selling price)- 30 lacs (actual purchase price from bank) = 15 lacs
2) 55 lacs (circle rate of the sale price) - 30 lacs (actual purchase price from bank)= 25 lacs
3) 55 lacs(circle rate of the sale price)- 55 lacs(circle rate of the sale price)= nil
Or is there any other calculation/scenario to arrive at Capital gain value in this transaction.
Bright and intelligent folks, pls help along with the valid reasoning or clause of IT.
Thanking you in advance :)
CAclubindia
