My client has purchased a property for Rs. 2900000 whose market value is Rs. 4500000 in Mar 13. Now he sold this property in Aug 13 for Rs. 3000000 & the market value is still Rs. 4500000. Now under Sec 50C he is required to pay tax on difference between market value & cost of acquisition i.e. on Rs 1600000 while his actual profit is just Rs. 100000 & if market values are considered his profit is Nil.
Is there any way out of this? Can anyone pls give me any case reference or any provision which can help me to pay tax on actual profit earned & not on notional profits
CAclubindia
