Sale of capital asset less than market value

market value of the asset is not considered in capital gain only valuation officer sec55A and stamp valuation authority sec 50c values are considered when Assessing officer is of the opinion that asset is sold at low price sub to 2 conditions

here in your question i am assuming that 14,00,000 is capital gain not net sale consideration because exemption is available on capital gain income not on net sale consideration

14,00,000 can be invested to claim full exemption if capital  asset is residential building long term capital asset u/s 54b

14,00,000 can be invested to claim proportionate exemption if asset is other than residential building

if assessee cannot invest then he need to deposit the amount in capital gain deposit scheme before due date of ITR

the guideline value given by relevant authority is Rs. 33,60,000/-. the asset in question is a plot purchased for  Rs. 3,92,600/- on 6th october 2006. The commision paid at the time of sale is Rs. 30,000/-. how will be his tax calculated?

how can he claim maximum exemption if he wants to buy a residential property with the capital gain?(sec 54F)

the asset sold is other than residnetial house property because you have asked for sec54f

sale consideration        ****

less selling exp                 **

net sale consideration  ****

less indexed

cost of acquisition           ****

LTCG                                *****

less sec 54f exemption

(LTCG / Net Sale consideration * amount invesetd in new house property)

Taxable LTCG                 *****

tax 20.6%