Need help- Capital gain tax on house

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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 :)

Replies (2)
Quick Summary
This discussion seeks clarification on calculating capital gains tax for a property purchased via bank auction. The user bought a property for £30 lakh, though the circle rate was £55 lakh, and paid stamp duty based on the circle rate. They are now selling it for £45 lakh, with the buyer again paying stamp duty based on the £55 lakh circle rate. The core question is whether capital gains tax should be calculated on the difference between the actual sale price and purchase price (£15 lakh), the circle rate at sale and purchase price (£25 lakh), or if the circle rate at sale negates the gain.

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.

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