Section 54 - Urgent, Please Reply.

Madam,

Indexation always done on the Registered sale deed value ie 2.5 lacs in your case.  

Extra amount you received cannot shown as gain because you taking it as unaccounted so how can you legalise the black money.  

Since registered sales value is equal to purchase value so there wont be any capital gain and if you index the cost then you ll have capital loss

Madam,

Indexation always done on the Registered sale deed value ie 2.5 lacs in your case.  

Extra amount you received cannot shown as gain because you taking it as unaccounted so how can you legalise the black money.  

Since registered sales value is equal to purchase value so there wont be any capital gain and if you index the cost then you ll have capital loss

I don't understand the position. Since, your purchase value as per stamp duty is only 2.5 lacs, then how could you paid through cheques. At present NABARD are not eleigible for capital gains exemption.Kindly get advice from CA with your documents.

Hi Manjula,

1.As long as there is sale deed for your purchase of residential plot (i.e for RS.13.5 lacs ) and vendor has paid income tax based on RS.13.5 lacs you can consider RS.13.5 lacs for indexation .

2.since the sale consideration received(Rs.13 lacs) is less than  cost of acqusition(13.5Lacs) there is no capital gain.In order prove the genuinity of sale transaction in feb 2012 there should be a sale deed for sale of plot

3.Amount received in excess of registered value (i.e 13minus2.5 lacs =10.5 lacs)is considered as income under the capital gain.But in your case cost acqusition is less than sale consideration so capital gain doest not arise.

Comments are invited.