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    SNIGDHA SAHA New Member

    my client got a property from his grand mother . which his grand mother agreed to sell few years ago, and took an advance of 19lakh rs from a X . and the total value for selling the flat was determined as 23lakh. now my client got the property and Mr X paid remaining 4lakh rs to my client in the previous year ... and when the property was registered in name of Mr X the valuation of the property was determined as 100000000 by the registrar . my client received only 4 lakh rs but his capital gain will be calculated on 100000000 rs . HOW CAN I HELP MY CLIENT?
  2. Raunak Gupta

    Raunak Gupta New Member


    First of all, it seems weird that the value of the property is Rs 10 cr and the selling price is Rs 23 Lakhs i.e. around 2% only. There must be some cash amount involved in it. So if there is cash amount involved, then the client should be advised to show the full value as CG will be calculated on stamp duty value only.
    However, if the Fair Market Value is really so low, then the assessee can claim before its AO that the FMV is lower that the value adopted by the stamp valuation authority and the AO shall refer the case to Valuation Officer who shall assess the value of the property. So you should go for the real FMV if you are confident about the lower value.

    Otherwise, to save CG, the other ways are to either invest the CG amount to another House Property or to invest in bonds referred u/s 54EC (such as NHAI or RECI bonds).
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