Capital gains

[savory icon]

Dear Sir / ma'am,

I have a specific query pertaining to capital gains after sale of immovable property, I request for suggestions from learned experts.

if government rate of property worth 2 lacs has been undersold for 1 lac, (as per sub registrar, the sale deed has to show the government rate as sale consideration amount) can the capital gains tax be paid on 1 lac. can an appeal be addressed to Income Tax department that the property was indeed sold for 1 lac and not 2 lacs. is there a provision?

thanks

[DR.MARIAPPAN GOVINDARAJAN]

In my opinion the value registered is taken into account for capital gains. This is the problem often based by the sellers who sells the property below the guideline value.In this regard I expect the views of the experts.

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Thank you Mr. Govindarajan for the reply. I request for views from experts for the query. In the event of capital loss owing to a distress sale, how to appeal to the income tax department that the property was in fact sold at a lesser price than market value and requesting for appropriate relief. Thank you.

[Guest]

Valuation of the property should be done from the registered valuer being as a distressed sales, if sold as such. If objected by the assessing officer, then, demand for valuation to be done from the department valuer. Also, raise objection before the stamp valuation authority regarding higher stamp duty charges. Also, produce evidence for lower rate than the rate for the purpose of stamp duty.

AI Summary

Discussion on Paying Capital Gains Tax Based on Actual Sale Price Instead of Government-Assessed Value for Property Sales. An individual inquired about capital gains tax on a property sold below the government-assessed value. They asked if tax could be paid on the actual sale price rather than the assessed value and whether an appeal could be made to the Income Tax department. A respondent explained that the registered value is typically considered for capital gains, highlighting a common issue for sellers. Another suggested obtaining a valuation from a registered valuer for distressed sales and challenging the stamp duty with evidence of the lower sale price. The discussion sought expert opinions on addressing such discrepancies.