Hi,
- 1.22 cr will be considered as sale value
- 50 lacs exemption is from capital gain and on balance you need to pay tax.
Thanks
54EC bonds
Hi, Thank you all for clarifying my previos questions. Could you please clarify the below 2 questions 1. I sold a property for around 1.22 crore accepted through cheque and mentioned in the agreement to buy between the buyer and us(seller), but the property was registered to the buyer for 90 lacs. Now, when calculating the Capital Gain on this property, should we consider the sale value as 1.22 crore or the registered value i.e. 90 lacs? 2. Now, lets assume we consider 90 lacs as the sell value, and in that if my capital gain is around 60 lacs. If I invest 50 lacs in 54EC Bonds, on which amount i need to pay capital gain tax? a. my remaining capital gain amount (60-50) = 10 lacs b. my remaining amount (90-50) = 40 lacs If i need to pay only for the remaining 10 lacs, can i show the remaining sale amount that i have received as income exempt from tax? or do i have to pay any other tax for that amount too? Apologies for the big question and all the details. Hope you can help. Thanks in advance.
Asked 5 years ago in Capital Gains Tax
Hi,
For capital gains computation you will need to consider sales price as 1.22cr.
You will need to pay tax on the unutilised portion of the capital gains. For the remaining money, there is no tax liability.
Regards,
Nikhil
Dear Sir,
Hope you are doing well !
1. 1.22 cr should be considered as sale value.
2. You need to pay tax on Rs. 10 lakh i.e. remaining capital gain amount.
Thanks & Regards,
Payal Chhajed
First of all if the entire amount has been received in cheque then why have you made a registered deed of 90 lakh?
What is its circle rate or stamp duty rate you will have to show sale consideration as stamp duty value as mentioned in section 50C and even if you show 90 lakh officer will ask why have the purchaser paid you extra 30 lakh?
2 it's on remaining 10 lakh.
3 how will you show remaining sale amount as exempt? Under which section.?
You need to pay tax.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
1. You should show actual sales consideration of 1.22 crores.
2. Assuming 60 lacs of capital gain, if you invest 50 lacs in bonds and you only need to pay tax on 10 lacs.
Hi,
1. Sales consideration would be 1.22 crores.
2. Your remaining capital gain amount would be INR 10 lacs on which you will have to pay tax. However, since capital gain will be calculates using 1.2 crores as sales value, your capital gain may not be 60 lacs. It will increase.
1. Sale value-1.22 Cr
2. You need to pay only for the remaining 10 lacs
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