Cap Gains Tax on sale value or registry value?

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  1. NV MANI

    NV MANI New Member

    Dear friends,

    The actual case is quoted below. Kindly provide guidance and help.

    Stamp paper was bought by the buyer and registration was done,
    (in line with same norms for sale transaction of similar property in the same locality, in the same month) and as approved by registering authority.

    The seller received consideration from the buyer higher than the sale value as registered in the document (Sale deed).

    How the seller has to pay income tax under the head " Capital Gain"? Is It:
    i. on the basis of value of consideration received, or
    ii on the registered value in the Sale deed?

    IT return form needs data on both "consideration received" and "registration value" .

    Kindly clarify for appropriate action.

    Thanks and regards,

  2. Amit Sahni

    Amit Sahni Active Member

    Ideally, it should be on the sale consideration received from the Seller.

    However, many a times sellers disclose that they have sold the property and the value mentioned in the stamp papers and receive the balance amount in cash and dont pay tax on this amount received in cash.
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