Long term capital gain and deemed income due to diff in valu

Discussion in 'Tax planning' started by saniya, Feb 15, 2014.

  1. saniya

    saniya Member

    I purchased an office in sep 1999 for rs 6 lacs, I hav not claimed any depreciation on it till date I.e. nov 2012. Now I will sell it in dec 2012 for rs 30 lacs. The valuation for stamp duty purpose is rs 72 lacs, which is more than twice the market value. I am told that the income tax dept can consider rs 72 less rs 30 lacs i.e. rs 42 lacs, as my deemed income and tax me on the same. Is it true? I will be investing the 30 lacs in another office immediately. Due to the illogical valuation for stamp duty purpose done in kolkata, I am not able to conclude this transaction , as I cannot pay the tax on deemed income if I have to pay it. Hav there been any cases where notices have been sent for deemed income on the basis of difference in stamp duty valuation and actual transaction value of property. Please advice what could be a legal way out of this problem....The property is not registered in my name and i will be the confirming party between the promoter and the buyer if the sale is effected. Read more at:

    http://www.caclubindia.com/experts/modify_message.asp?entry_id=566719

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