land purchase value is lower than circle value /income tax
DILIP KUMAR SEN
(Querist) 26 July 2017
This query is : Resolved
My Company is purchasing agricultural Land from farmers. During registration it is found that Actual transaction value is lower than Circle value and is paid stamp duty on circlet value. Now my point is that the difference of transaction value and circle value will come under Income Tax from undisclosed source and will be taxed. This quite a fictitious assumption by Income Tax authority.
My question is that 1) How this draconian rule can be avoided ? 2) How I can prove my genuine transaction at present market rate ? 3) What precautions should I adopt to prove my genuine purchase and avoid Income Tax liability?
Rajendra K Goyal
(Expert) 26 July 2017
Company can afford professional consultancy.
Kumar Doab
(Expert) 26 July 2017
Apparently: Stamp duty has been paid on circle rate and actual payment is narrated in deed.
Handover the matter to your legal cell or law firm or counsel engaged by your establishment..
P. Venu
(Expert) 27 July 2017
The circle rate is only an administrative arrangement. It has no force of law.
