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Capital gain in a sale of a plot purchased on assignment agreement
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....apital gain in a sale of a plot purchased on assignment agreement<br> Query (Issue) Started By: - Prasanna Dated:- 14-2-2026 Last Reply Date:- 19-2-2026 Income Tax<br>Got 3 Replies<br>Income Tax<br>i have purchased a property(villa plot) on assignment agreement by paying 50% to the assignor and 50% to the developer. The sale deed consideration is for 50% value, all transactions are legal and digit....
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....al. TDS done for 50% and stamp duty paid is for 50%, can i consider 100% value of the property for capital gain if i sell it? Reply By Hitesh Jain: The Reply: In such cases, capital gain is computed on your actual cost of acquisition, not merely the amount mentioned in the registered sale deed. If you have legally paid 50% to the assignor and 50% to the developer, and you hold prope....
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....r documentation (assignment agreement, payment proofs, bank entries, TDS records), the total amount paid by you can generally be considered as your cost. However, ensure the assignment agreement clearly transfers rights and is legally valid. Also check whether the stamp duty value or Section 50C implications apply at the time of your sale. Since documentation plays a crucial role here, it would....
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.... be advisable to review all papers carefully before finalizing capital gains computation. Reply By Prasanna: The Reply: Thanks for the reply, However, do I have to pay TDS for the Asignor portion of the 50% pay? Or will it be considered as a property ownership transfer fee, so not to pay TDS for this ? Stamp duty is paid only for the 50% of the total value, hence will it be considered a....
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....s underpaid stamp duty and and attract any penalty from the Govt? Reply By shalini taknet: The Reply: No, you cannot claim 100% property value as cost base for capital gains. Your actual cost of acquisition is the total amount you paid (50% to assignor + 50% to developer + incidental costs like stamp duty/registration). Cost of acquisition (Sec 55): Full purchase price/expenses to acquire ....
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....the asset, regardless of sale deed value (which was only for 50% as assignee). Deed shows 50% because assignor transferred their rights; you paid remaining directly to developer total outlay = your COA. TDS/stamp on 50% irrelevant; COA is your expenditure, not deed figure. Courts uphold actual payments. ? Keep bank statements/digital trails for both payments. Indexed COA = total cost x CI....
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....I ratio. Gain = Sale price - Indexed COA. Claim full actual cost in ITR. AO may accept with docs; low dispute risk. Consult CA.<br> Discussion Forum - Knowledge Sharing ....