50C
GYAN JAIN
My client Sold Industrial Land for Rs 9.00 LAcs and the value assessee by registrar was rs 24.88 Lacs . In computing capital gain section 50c was not consider . what are the pros and cons of this default please advise me
Industrial land sold below assessed value; potential 300% penalty for income concealment; Section 50C not considered. A client sold industrial land for Rs 9.00 lakhs, while the registrar assessed its value at Rs 24.88 lakhs. The capital gain was calculated without considering Section 50C. One respondent noted the risk of a 300% penalty for income concealment if the transaction is noticed by the Assessing Officer. Another suggested arguing that the stamp authority's valuation was excessive and that the difference between the assessed and actual sale price is not income but could be considered a gift, thus not subject to capital gains tax. (AI Summary)