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

it will be 19,00,000 acc. to section 50(c)

@ tushar ...if u understand the question properly then plz let me know the whole ans logics too.

isme stamp duty ke portion ke upar to kuch ni bola ...

(3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer.

https://www.incometaxindia.gov.in/acts/income%20tax%20act/50c.asp

Thats why the value will be takes Rs.19 lakhs .

Originally posted by : TusharSSampatM.Com CA,CS-FINAL
	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) buyer has paid stamp duty and if needed he will claim refund of stamp duty, not the seller, who is claiming capital gain

2) the registration instrument is the property of buyer, we are discussing about 50C and stamp duty, but never discussed the actual payment mentioned in registration instrument, and what valuation is done by seller and buyer in registration instrument, 

3a) AO can increase the valuation as per stamp duty paid, above the claim of assesee, but for that purpose we have to understand the registration instrument also, whether registration instrument made on actual valuation and stamp duty paid on actual on submission and registrar "imposed" additional stamp duty..........

or 

3b)the assessee made the registration instrument at market value as per registrar, and paid full stamp duty, get registered and now claiming lesser amount in capital gain ?

without complete picture its tough to get any conclusion, 

4)in such case where the assesee is not interested to disclose the facts, AO will depute valuation officer....... who will ascertain the actual value.

Rs.19,00,000/- should be taken.

1900000 shall be full consideration for this purpose

I think 19,00,000 should be the full value of consideration.

The value for Sec 50C should be taken to be Rs.1900000. Payment of stamp duty has nothing to do with income tax.

If you had challenged the stamp duty value and it is reduced to Rs.1900000, then it is reduced only for income tax purposes and not for stamp duty payment. Stamp duty is paid on the basis of Circle Rate of the area. You cannot contest to stamp authority that the value should be FMV of the asset. It is same for whole area and for every person.

So, take the value as Rs.1900000 for calculating LTCG.

Rs.19,00,000 should be taken as consideration, as the valuation of the authority and a lesser sum is determined as fair value.

This is an example from Vinod gupta's book pg.no. 28

Mr. A had purchased a land on 15.08.1987 for Rs.700,000/-. The said land is sold on 02.03.2011 to Mr.B. Mr.A has declared Rs.35,00,000/- as the consideration for the sale of the land whereas, the value assessed by govermet Authority for stamp duty valuation purposes is Rs.38,00,000/-

Suppose, The asessing officer refers Valuation of land to valuation officer as per the provisions of Sec.50C(2).and the valuation officer ascertains the value of land as:

(i) Case I - Rs. 36,00,000/-, (ii) Case II - Rs.40,00,000/-, (iii) Case III - Rs. 32,00,000/-

Case I -

In hands of Mr.A

Sale price - Rs.36,00,000/-

In hands of Mr.B - COA - Rs.35 lakh

Case II -

In hands of Mr.A

Sale Price - Rs. 38,00,000 as per sec. 50C(3)

In hands of Mr.B - COA - Rs.35 lakh

Case III -

In hands of Mr.A

Sale Price - Rs. 35,00,000/-

In hands of Mr.B - COA - Rs.35 lakh

YES IF YOU CLAIM THAT STAMP VALUE IF MORE THAN FMV  CASE GOES TO VALUATION OFFICER AND THE VALUE HE FINDS OUT WILL BE BINDING ON YOU AND THE A O BOTH. YOU CAN NOT BY YOURSELF OR AO CAN NOT TAKE 23 OR 19 LACS ITS THE CERTIFICATE OF VALUATION OFFICER THAT WILL DECIDE THE VALUE , ANY HOW THIS IS SUBJECT TO APPEAL IN CIT (A) OR ITAT.

I THINK PARESH HAS TO CHECK IT ONCE AGAIN IF SALE IS INFALTED FRO SELLER AND BENEFIT OF ACTUAL COST ONLY IS GIVEN TO BUYER THEN IT LEADS TO DOUBLE TAXATION OF INCOME WHICH IS AGAINST BASIC RULES OF TAXATION. I THNK THE DEEMED SALE CONSIDERATION TAKEN UNDER 50 C SHOULD BE TAKEN AS COST TO THE BUYER . AND IF THE DEEMED SALE VALUE IS LESS THAN ACTUAL CONSIDERATION THEN THE ACTUAL CONSIDERATION IS TAKEN AS COST.

Thnxx evry one for ur Timely n valuable response to my querry.