Upgrad LLM

capital gain


I bought a land in my personal name in the year 2003 for 1 lac and sold the same for consideration value of 4 lacs in the year 2005 and the deed was pending .The purchaser later informed me that the deed was later assessed by the registrar for 31 lacs.The income tax dept. has sought an explanation. Do i have to pay capital gain on 3 lacs or 28 lacs. The IT officer is demanding a huge bribe to settle the matter,he says he has a formulae with which he can bail me out and if i do not pay then  i shall be in deep waters. Every deed assessed above 30 lacs is sent to the central office of IT dept at Delhi from where the process started. I am going through sleepless nights. Can anyone bail me out. Has any judgements been given by the high courts or supreme court regarding such type of case.

 
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Advocate

Look firsly go into the fact that what was the circle rate concerning the said area since the Registrar has no power to assess our land more than the circle rates of that area. but Income tax office has the power to assess the land more than the circle area to inquire evasion of taxes. bt you can file an appeal in th IT Tribunal against the decision of the IT office and you shall be relaxed a little bit then. 


Better call the Anti corruption Bureau. 

 
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n/a

Can one sell a plot and invest the same in a flat without paying Income Tax for capital gians? Pl advice


Mani

 
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Advocate

Please give complete details of date of purchase and sale, it is necessary to arrive whether as to the sale attracts long term CG or short term

 
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Advocate

Plz refer s.50C of the IT act for your answer

 
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Advocate

The 50 C is for sushil


 

 
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Advocate

Sushil: This is for you


50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a State Government (hereafter in this section referred to as the stamp valuation authority) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer.

(2) Without prejudice to the provisions of sub-section (1), where

(a) the assessee claims before any Assessing Officer that the value adopted or assessed by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer;

(b) the value so adopted or assessed by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court,

the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act.

Explanation.For the purposes of this section, Valuation Officer shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).

(3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer.]

 

 
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