Capital gains on sale of property
This is with regard to sale of property in delhi acquired 30 years back.The prevailing market rate of the property is much below the circle rate of the area in which property is located.The property falls in Category A in delhi. The prevailing market rate of the property is almost 40% less than the circle rate due to depressed market conditions.
Please advise wrt 1. Payment of CAPITAL GAINS TAX WHEN THE PROPERTY IS ASSESSED AT THE INCOME TAX LEVEL as the I. T. authorities levy capital gains tax on amount as per circle rate basis and not on actual sale basis.
Registrar also levies stamp duty at circle rate basis and not on actual prevailing rate basis although there is some ruling of Honble High Court of delhi to register property at actual market rates but the practice is otherwise.
Therefore Is there a remedy available to a seller of such property so one can pay capital gains on the actual sale proceeds of the property and not on the amount as per circle rate of the property.
K Sood