Sec 56 income tax act

[saif Akhtar]

Respected sir/madam

I intend to purchase 1/3rd portion of a 9 cottah plot of land and building( 50 year old structure built on 2 floors and fully tenanted) in burrabazar Kolkata for a consideration of RS 25 lacs.However the market value of the land & building as per sub registrar for payment of stamp duty is being value at 1crore 60 lacs for 1/3rd portion.The stamp duty for registration in Kolkata is about 8.5 % of market value as per sub registrar's office and it will be around 13.5 lacs.I do know when stamp value of the property>fair market value we can refer to a valuation officer for the purpose of paying income tax under sec 56 of the income tax act but my query is if the same valuation officer can be used for challenging the market value fixed by sub registrar for payment of stamp duty and registration charges.Lawyers say that valuations in sub registrar's office is done through a computerised format and market value cannot be challenged.

Thanking You in Anticipation

Saif Akhtar

AI Summary

Individual Queries if Valuation Officer Can Challenge Sub-Registrar's Market Valuation for Stamp Duty Under Income Tax Act Section 56 An individual is seeking advice on purchasing a one-third portion of a property in Kolkata valued at Rs 25 lakhs, while the sub-registrar's market valuation is Rs 1.6 crore for the same portion. The stamp duty for registration is 8.5% of the market value, amounting to approximately Rs 13.5 lakhs. The individual is aware of using a valuation officer under Section 56 of the Income Tax Act for tax purposes but queries if the same officer can challenge the sub-registrar's market valuation for stamp duty. Lawyers have indicated that the sub-registrar's valuation is computerized and cannot be contested.