Purchase of plot

Hello ,

As per new provision, its advisable to purchase property at stamp value.

as per your case....if you purchase property below stamp value, then the difference between (11lakh - 5 lakh ) 6 lakh, will be included in your income (as income from other sources) so its advisable to show it at 11 lakh.

Thanks 

shikhar

Thanks Mr. shikhar

Is  there any reference (Sections or caselaws) for new provision which you have mentioned above (for Purchaser point of view).

Regards,

Thhyagaraj.G

Friend, read section 56(2) for purchaser and for seller read sec 50c

Thanks 

https://www.livemint.com/Money/Thui7higebdns5nJdM8EKK/Tax-on-purchase-of-immovable-property.html

on such asset, the difference between the Stamp Duty Valuation and actual consideration exceeds ` 50,000/-, tax will be payable on such notional amount by the seller as well as the purchaser under the following sections:

1. In case of the seller who holds land or building or both as stock-in-trade
   as business income under new section 43CA

2. In the case of the seller who is holding land or building or both as a capital asset under section 50C

3. In case of an individual or a HUF as a purchaser under section 56(2)(vii) as "Income other sources".

find reference for the above answer

https://www.aiftponline.org/journal/aiftpjournal%20july%202013/full_value_of_consideration_of_i.htm