Dear All,
I need a suggestion from you on behalf of my friend.
He has purchased a residential Flat along with his father and mother at Kolkata with a consideration of Rs 28 ( Twenty eight) lakhs [contribution amount: father: 12 lakhs, mother 10 lakhs, my friend: 6 lakhs over 5 years ] where full value of consideration U/S 50C is Rs 51 ( Fifty one ) lakhs for the computation of Capital Gains. As per U/S194 IA Transferee is liable to deduct Tax @ 1% where consideration is 50 ( fifty ) lakhs and above at the time of making payment / credit.
Please advise whether he is liable to deduct tax at the time of payment and if so, then on what amount between purchase price (28 lakhs) and current market value (51 lakhs) as per registration office. Also, if they need to deduct the tax, do they need to deduct it on the basis/ratio wise as per their contributed amount?
CAclubindia
