Tax liabilities in case of property purchases

Sir, in this case Capital Gain should be calculated by using  Valuation made by SVA as sale consideration U/s 50c. there is an exception if the assessee may prove that the Fair Market Value of the property was lower than valuation made by SVA before the Income Tax Authorities.

Dear Sir,

No, the purchaser is not required to pay any tax on that transaction, as finance Act, 2010 amended sec. 56(2)(vii) to specifically exclude such transactions from "income under other sources"... so, he is not liable for any tax payment.. only seller is required to pay tax.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Dear Pankaj,

Your Question is whether purchaser is liable to pay tax on such difference.

For the purchase there is no question to pay any tax as he has not made any profit.

But when such purchaser would sale his property then Cost Of Acquisition for such property shall be taken to be actual Cost not the Value determined by Stamp Valuation Authority.

Conclusion Purchaser is not liable to pay any tax.

Regards 

Deepika Jain