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Please help Sec 50C -deemed value of consideration??

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)

25 May 2011

hi,

we hve sold(trf) a land on 30.3.2011 n since sec 50C is applicable, d stamp duty value adopted by stamp valuation authority for the purpose of payment of stamp duty for transfering the name in name of buyer, comes out to be 23,00,000.

We d seller had challenged d abov valuation n appealed to stamp valuation authority tht this val is excess of its FMV .Finally d amt was declared to be19,00,000 by stamp valuation authority.

My Querry is since as per sec 50C The value adopted by stamp valuation authorty shall be d full value of consideration (deemed FVC)

thn whthr i shld tak Rs23,00,000/-(original value) or19,00,000 (final value)as FULL VALUE OF CONSIDERATION ???? FOR CAL LTCG.

PLS REPLY !! UR VIEWS WILL BE HIGHL YAPPRECIATED THNXX IN ADVANCE.

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28 Replies

CA Harshit Rastogi (Chartered Accountant) (722 Points)
Replied 25 May 2011

It should be Rs. 1900000/-

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 25 May 2011

But d value adopted fr stamp duty payment is rs 23,00,000 n duty already paid,

so as per sec 50c tht shld be taken as deemed val of consideration,

why 1900000???? any reason behind it ?

CA Harshit Rastogi (Chartered Accountant) (722 Points)
Replied 25 May 2011

Sec 50C says that value taken by Stam duty Authority......In ur case value taken by stamp duty authority is revised hence it should be taken at rs. 1900000/-......it is irrelevent that on what amount u have alreadt paid stamp duty

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 25 May 2011

But Value taken fr payment of stamp duty is rs23,00,000 n duty already paid on it ....this is revised after making stamp duty payment n not b4 manking stamp duty paymnet.....thn also tak 19,00,000 ????

CA Harshit Rastogi (Chartered Accountant) (722 Points)
Replied 25 May 2011

Sec 50C says that value taken by Stam duty Authority......In ur case value taken by stamp duty authority is revised hence it should be taken at rs. 1900000/-......it is irrelevent that on what amount u have already paid stamp duty...

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 25 May 2011

If 23,00,000 value is irrelevant thn you are nt going by the wordings of sec 50c??????

CA Harshit Rastogi (Chartered Accountant) (722 Points)
Replied 25 May 2011

Pls refer Sec...50C(2)......it is vry clear about it...........u should claim before the A.O. that value taken for the purpose of stam duty is exceeds its FMV.....and A.O is duty bound to calculate Cap gain on Rs. 1900000/- Practically u can submit the proof that stamp duty authority had revised it Value

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 25 May 2011

helooooooo! i have referred it n then only m writng....u understand wats d problm....

AO can always argue that if we had a dispute with the stamp duty valuation of23,00,000 thn y did we challenge it after tranfering the land to buyer n not before??????????

He willl says when u accept23,00,000 for paying stamp duty n stamp duty is in fact paid also..... but whn u needed to take it as full value of consideration as deemed value for cal of LTCG .n saving tax...thn u challenge...thn wat i shld reply.....pls tell me???

CA Harshit Rastogi (Chartered Accountant) (722 Points)
Replied 25 May 2011

then it refer to valuation officer ..........Why A.O argue on that matter???

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 25 May 2011

AO will argue as i am saving tax on d diffrence of rs 4,00,000 (23,00,000-19,00,000) n wat anbt d stamp duty paid will i get d refund on Rs 4,00,000???????

Thnxxx for ur replies....

1 Like

(Guest)

harshit is correct in all the matter , even after payment the stamp duty the revised valuation should be taken into considereations for the purpose of capital gain and that is 19 lks

1 Like

Paresh Rathod (CA) (222 Points)
Replied 25 May 2011

Where valuation can be referred to the Valuation Officer [Section 50C(2)]: If the following conditions are
satisfied, the Assessing Officer may refer the valuation of the relevant asset to a Valuation Officer in accordance with section 55A of the Income-tax Act:

(i) where the assessee claims before the Assessing Officer that the value adopted or assessed by the
stamp valuation authority exceeds the fair market value of the property as on the date of
transfer; and

(ii) the value so adopted or assessed by stamp valuation authority has not been disputed, in any
appeal or revision or reference before any authority or Court,

Consequences where the value is determined by the Valuation Officer: If the fair market value
determined by the Valuation Officer is less than the value adopted for stamp duty purposes, the
Assessing Officer may take such fair market value to be the full value of consideration. However, as per
section 50C(3),

if the fair market value determined by the Valuation Officer is more than the value
adopted or assessed for stamp duty purposes, the Assessing Officer shall not adopt such fair market
value and will take the full value of consideration to be the value adopted or assessed for stamp duty
purposes.

Paresh Rathod (CA) (222 Points)
Replied 25 May 2011

As per my View It shall come Rs.23,00,000/-

Arvind Sharma (ACA) (1432 Points)
Replied 25 May 2011

definetly AO will take Rs. 1900000

how can he overrulle value decided by Court....?????

No doubt.... If AO takes Rs. 2300000, go to appeal, you will definetly won...

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