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tax- capital gain..

Tax queries 1039 views 3 replies

rishi

student

31 Points Joined 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/-..??

rishi..

Replies (3)

kannan

Management Consultant

61 Points Joined October 2007

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)

5073 Points Joined September 2007

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.