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Sales consideration of property
If sales consideration decided by court for a disputed property is less than the stamp value of property. Is there any taxability for profit arises in this case or not?
Replies (1)
The seller will have to pay tax on Capital gains
(if long term)
20% (Sales consideration- transfer exp - index cost of acquisition - index cost of improvement)
(if short term)
no indexation is allowed and tax @ slab rate.
for buyer : gain will be taxable under 56(2)(x) as other income @ slab rates
only if difference between price and Sdv exceed 50000
AND
sdv is > 105% of consideration
(if long term)
20% (Sales consideration- transfer exp - index cost of acquisition - index cost of improvement)
(if short term)
no indexation is allowed and tax @ slab rate.
for buyer : gain will be taxable under 56(2)(x) as other income @ slab rates
only if difference between price and Sdv exceed 50000
AND
sdv is > 105% of consideration
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