Capital gains on property sale

- As per the law it should be govt.rate i.e Rs.8,000. If you can justify the market rate then it can be acceptable but it would be subject to litigation. There are many case laws which supports lower rate. Obtain a valuation report justifying the market rate.

Hi

Capital gains shall be calculated on the registration value of the property.

• If actual sales consideration is less than stamp duty value, registration would be done on stamp duty value.
• If actual sales consideration is more than stamp duty value, registration would be done on actual sales consideration.

Hello,

You will have to consider the Government Rate of Rs. 8000 per Sq. Yds.

If you consider the market rate which is below the government rate, then the Government Rate would be assumed to be the Full Value of consideration and thereby Capital Gain will be computed.

Indexation will be available in both scenarios.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Dear Sir,

Hope you are doing well !!

You will have to pay the capital gain taxes on Registration value.

As per law, you need to pay tax on 8000 ( whichever is higher)

Hello Sir,

With effect from 1st April 2003 i.e. from A.Y. 2003-04, Section 50C of Income Tax Act, 1961 states that if the value stated in the instrument of transfer is less than the valuation adopted or assessed or assessable by the stamp duty authorities, such valuation of the stamp duty authorities will be considered as the sale consideration for the purpose of computation of capital gains arising on transfer of land or building or both.

You need to pay on 8000 less indexed cost.

However you may pay @5500 per sq yds if you have proper support for why are you getting less than market value and why are you accepting it. (This is subject to litigation.)

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.