Tax

Hi,

There will be no tax liability at the time of sale of the property.

Regards,

Nikhil

Hi,

I think you are getting confused between circle rate and actual price.

As circle rate is for stamp duty calculation.

In your case, there is not tax liability at the time of selling plot. So, you don't need to worry.

You are not liable for any capital gain tax as there is no capital gain.

Thanks & Regards,

Payal Chhajed

In this case when you purchase property you will have to pay tax u/s 56(2)(vii) by declaring the difference amount i.e. 12 lakh less 6 lakh as income from other sources and when you sell this property your purchase cost would be 12 lakh and sale value would also be 12 lakh because of section 50C and so you will have to pay zero tax at time of sale.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

There will be no tax liability.

Here you have purchased a property for Rs.6 Lakhs, which has valuation (Assumed Stamp duty value) of 12 lakhs.

As per Income tax act, then such purchase of immovable property for less than adequate consideration will be treated as Income from Other sources at the time of purchasing the property (in 2017).

And at the selling of same property, it would be deemed to be sold at 12 Lakhs only even though you sale at 6 Lakhs.And so the Tax will charged @30% since the transaction is "Short term Capital Gain".

Capital gain tax will be around 1.8 lacs.

Hi,

- You need to pay tax Rs.1.80 lacs.

Thanks