Vinay (PM) 16 August 2013

Capital gain tax

Respected Sir, Madam,

I had booked a flat in 2011 and it is now ready for possession. I paid a total sum of Rs 51 lakh. However, recently I got it registered at the government guidance value which was much lower than what I paid. Now, 3 months later I am planning to sell it off.

I would like to know that what value of the flat will be considered for calculating the capital gain. Is it 51 lakh (actual money spent) or will it be the guidance value? Please suggest.

Thanks

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1 Replies

dashrath patel (auditor) 05 September 2013

For deciding sale consideration: As per income tax if consideration is lower than the stamp value than stamp value is considered ,, it is guidance value for the property and assessing officer will consider that value when you show the consideration lower than stamp value decided by Government. If actual consideration is higher than the stamp value than actual sale price is to be considered . so set the sell price above the stamp value to reduce the future complication

In your case you have to prove that you have paid 51 lacs( purchase price) ,,so it is preferred to pay consideration by cheque only.