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tax- capital gain..

rishi (student) (31 Points)

12 March 2008  

if any property is sold:-

sale consideration- Rs.750000/-

value as per section 50C is Rs.1500000/-

and the capital gain is Rs.1000000/-

wht will be the amount to be invested for exemption.?

if it is Rs.1000000/- thn from whr will the assessee get the excess amount of Rs.250000/-..??



 3 Replies

kannan (Management Consultant) (61 Points)
Replied 12 March 2008

what is the cost of the asset? if sale consideration is only Rs. 750000 how can capital gains be more than that?

Jeet Biswas (ACMA (in Service)) (5072 Points)
Replied 12 March 2008

Sec 50C aims to trap the intentions of deliberately showing a lesser sale consideration to avoid C.G. So, according to Sec 50C, guideline valuation of Stamp Duty, Rs. 15lacs has been taken as full value of consideration. The Cost of Acquisition must have been Rs. 5 lacs. and Thus, the C.G of Rs. 10 lacs. If the Assessee thinks that the guideline valuation of Stamp duty. is much more than the FMV as on the date of sale, he may appeal to the Assessing Officer....who may in turn refer the case to the valuation officer.

Samir (Chartered Accountant) (145 Points)
Replied 12 March 2008

I completely agree with Jeet.

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