Taxation on purchase of capital asset for a consideration less than stamp duty value
Assessee has purchased a capital asset for Rs.50000/- in year 1979 but no purchase deed was made at that time. He paid all consideration in 1979. In F.Y.2013-14 he made purchase deed for the asset indicating consideration Rs.50000/- paid in 1979; but now Stamp duty value of the property is 50 lakh. Please guide me about tax liablity of assessee/buyer in such a case.
Replies (2)
Hi,
In your case,Fair Market Value of Property will be considered as on 01-04-1981 COA.
There is no relevance of purchase deed made for the assets in FY 2013-14.
In case assess sale the assets now the SDV or Sale value which ever is higher will be considered as Sale Consideration.
Capital Gain will =Sale Consideration - FMV as on 01-04-1981.
Thanks !!
What about taxation under Section 56(2)vii
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