How to calculate income tax if Sale value of a property is less than the current government value

Share
Share This Thread
  1. anish_mannu

    anish_mannu New Member

    How to calculate income tax if Sale value of a property is less than the current government value

    in my casse
    I am buyer, buying the property at 42 lakhs but as per ready reckoner rate its value is approximately 50 lakhs.
    What other charges will I have to bear other than Stamp duty and registration fees. Will there be any fine on difference from income tax perspective ?
     
  2. rudrabose

    rudrabose Active Member

  3. anish_mannu

    anish_mannu New Member

    Thanks a lot for the details. Now in my case I have made payments of 6.51 lakhs by check before increase of circle rate but We did not make any agreement to sale . We had to close the deal by 23rd Dec 14 but it got delayed and now it will be done by 15th jan 15.
    What to do now ?
    Property is a well built flat but surrounded by slums from all three sides
     
  4. rudrabose

    rudrabose Active Member

    The circle rate of the date on which the property would be registered would be considered.

    The circle rate of the date on which the advance has been paid would not be considered.
     
    anish_mannu likes this.
  5. anish_mannu

    anish_mannu New Member

    Thanks once again

    But due to this there is a huge addition to cost . what is the solution gor this
     
  6. jayendra singh

    jayendra singh New Member

    Sir, if we take premium more then on circle rate in white (cheque) & are we liable to pay tax on the extra amount received. (buyer has paid stamp duty as per circle rate)
     
  7. rudrabose

    rudrabose Active Member

    @jayendra singh : The actual sale price or the stamp duty circle rate - whichever is higher would be deemed to be the sale price for income tax purposes.

    Therefore, as you have taken cheque for more than the circle rate - therefore income tax would be payable on the total amount received.

    Moreover, the stamp duty should have also been paid on the actual sale price and not on the circle rate.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
INCOME TAX CALCULATE & IT RETURN FILE Income Tax Jul 19, 2017
How to calculate tax for Consolidated income person? Income Tax Feb 19, 2016
How to calculate Income tax on Rent & Business Income Income Tax Nov 11, 2014
How to calculate Interest on Late Payment of Income Tax Income Tax Jul 12, 2014
How to calculate Turnover in trading of Equity Futures. Income Tax Dec 23, 2017