Hi , if a property consisting of land and builiding is sold section 50C will come into picture according to which fair market value that is value fixed by the municiple authority will be considered as the sale price .

what if it is only land??

you can sold the propertly less than the F.M.V. but it can't be less than the Municipal Authority value or Stamp Value for tax purposes.

Like in case of land, you can't declare the full value of consideration less than it's Stamp Value.

e.g. fmv is Rs. 5 Lac and Stamp value is Rs. 1 Lac than if u sold it for Rs. 80k than ur full value consideration will be considered Rs. 1 Lac and not 80k. But if it is more than 1 lac than the higher will be considered.

What exactly is "stamp value"?

Suppose I see the following written on the registration papers:

Bainama: 40000

Maliyat: 50000

Stamp: 3320

Dar: 1500/sq. meter

Is the stamp value maliyat or stamp?

Could you please provide me some more details like

1) Fair Market Value of the Property

2) Purchase Cost & when you have purchased

3) Total Sq. meter Area

4) Token Money or Bayana / Bainama you have paid while purchasing the property

5) Stamp Charges % like you have said it is 3360. Stamp Charges are usually a % on a value. I want to know that value

After that i will clear you the whole position.

As per Section 50C if Sales Consideration is less than value as per municipal authority then Value considered by Municipal Authority for stamp duty purpose will be considered as the sales consideration. 

Look these are three terms ---

1. Sale considerarion

2. Cost

3. Circle Rate

Stamp duty is to calculate on the % of circle rate of the area where property situated. Or we can say that Govt has decided the minimum rate of every property in India. It is called Stamp Valuation.

If u r seeling below this value then Govt wll not accept it and calculate capital gain using this value as sale consideration.  

Hello Everyone,

 Here it is not known whether the gains are LTCG or STCG

In Case of LTCG: Section 50C applies.

But in case of STCG the Agreement Value will be considered, even if lower than Stamp Value.

Stanp Duty valuation i.e MV: 20,00,000/-

Agreement value: Rs.10,00,000/-

in STCG the SC will be Agreement value: Rs.10,00,000/- (Deemed provision does not applies)