Section 50c

[varun arora]

Dear Experts,

Kindly resolve my query,

I sold my house at a value lesser than a value adopted for the purpose of stamp duty and in that particular case.

Valuation for stamp duty -10,000

my transaction value(Actual sale value) - 8,000

And my assessing officer is demanding tax on differential amount i.e. 2,000 while applying section 50c

Is there any kind of remedy availabe because i sold my property actually at 8000 .

[DR.MARIAPPAN GOVINDARAJAN]

The demand of tax on differential amount is correct. No remedy is available.

AI Summary

Section 50C valuation permits tax based on stamp-duty value despite lower actual sale consideration in assessment. When the stamp-duty valuation exceeds the declared sale price, the higher stamp-duty value is treated as deemed sale consideration for computing capital gains under Section 50C, permitting the assessing officer to tax the difference between stamp-duty value and actual sale consideration; in the presented factual scenario the respondent advised that such a demand is correct and no remedy was available.