Regarding tax on purchase of flat under section 56 (2) (vii)

Dear Sir,

 

I booked a flat in the month of Oct 2014 and registration of the same was done in Feb 2015. Between this period the Circle rates of the said property were hugely increased by the state govt and the according to the circle rate the property was valued at Rs. 91 Lakh on which I paid the Stamp duty, but in actual the said property was transferred / purchased by me for Rs. 31 Lakh only.

 

 Now please guide me whether I have to pay tax on this huge difference. I am not selling this flat, its self occupied. I have received the notice from Dept of Income Tax. Pl suggest what to do ?

 

Regards,

Replies (3)
booking with builder itself does not mean that you are entered into legal agreement it is just the token of acceptance that you have shown by booking the property where as when you get it registered it becomes a legal and forceful agreement to both the parties for buyer and seller and is boundful to both of them , hence whatever the rates or difference or any huge difference as you said that has taken place during the period on account of appreciation of the property value you will have to pay the Texas as per the effective rates of that particular date and you have not mention which income Income Tax notice have you received it may be only high value transaction notice , you should specify the section or elaborate the issue to obtain the reply . TAX MATE PUNE .
you can avail tax benefit of all expenses that you're incur on account of acquisition of property and stamp duty paid is also subject to tax benefit depending upon the type of income that you are having .
please give details such as stamp duty value as on date of booking, stamp duty value as on date of registration and whether you have paid any booking or advance amount on or before the date of booking and the mode of payment

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