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Section 50c contradicting 54f

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VAIBHAV SACHDEVA

STUDENT

36 Points Posted on 09 October 2014

Hello..I'm in a big confusion regarding Section 54F.Let us suppose

Sales consideration for a plot:- Rs.5 crores

But,Value adopted by Stamp Valuation Authority :-Rs.10 cr.

Now,the question is, if the assesse wants that the whole capital gain will be exempt.Then how much amount he has to invest in purchasing residential house(u/s 54F).

As per Gyan Chandra Batra v. ITO 133 TTJ 482 (Jp) he has to invest just Rs.5 crores.But as per the judgement in the case of Gouli Mahaevappa v. ITO 145 TTJ 489 (Bang.) he has to invest Rs.10 cr.(As per my study, this judgments provide this).

Please help me out...and let me know whether i have interpreted judgments in the right context or nt...and also answer me for the abovementioned question.....

Replies (1)

Mihir

Wealth Manager

5358 Points Posted on 09 October 2014

I think if the sale value is 5 cr and stamp value is 10 cr, the assessee is required to compute capital gains on the sale value, however, the balance 5 cr difference from the stamp value becomes taxable under income from other sources.

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