Company has 2 shareholders with equal shares. Company has a residential property rented to one shareholder since many years.
It is proposed to sell the property jointly to the shareholders - and since the property is encumbered the sale price is fixed at 50% of the market price (as per ready reckoner).
Will this be accepted by the revenue department ?
Mr.C.J.Rego
In the Income-tax Act, 1961 Section 50C was inserted with effect from 1-4-2003. As per the provisions of the said section if the sale consideration received or accrued on transfer of a capital asset being land or building or both is less than the value adopted or assessed or assessable by any authority of a State Government (stamp valuation authority) for the purpose of stamp duty in resepct of such tranfer the value so adopted or assessed or assessable shall for the purposes of section 48 be deemed to tbe full value of the consideration received or accruing as a result of such transfer.
For more clarification please refer the section 50C.
Best Wishes
Sathikonda
Sir Sathikonda is rite, in this case Sec 50 C shall and SALE PRICE SHALL BE THE HIGHER OF THE FOLLOWING
1) VALUATON FOR THE PURPOSES OF STAMP DUTY
OR
2) ACTUAL SALES PRICE (I BELIEVE 50% OF MARKET PRICE)
A R JADHAV AND ASSOCIATES
Mumbai
CA Inter
View Details
CAclubindia
