Long Term Capital Gain Tax

Querist : Anonymous (Querist) 19 July 2011 This query is : Resolved
I have sold a flat at less than government rate after 11 years of purchase.
I had to sell due to some emergency expenses.
The Stamp Duty is accepted by the registrar and paid at the sale price.
I want to pay Long Term Capital Gain Tax.
"As per section 50C(3)"
Thus, sub-section 3 of section 50C of the Act would mean that if the value ascertained by Valuation Officer exceeds the stamp value; the value adopted for computation of capital gains, the stamp value alone would be adopted.
Please confirm that I should consider stamp duty value to compute the LTCG Tax

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Vineet (Expert) 04 August 2011
The Long term capital gain to be computed considering actual sale price or the value adopted by stamp authorities whichever is higher. In your case, as per your statement, the registrar has accepted sale price for stamp duty purposes, so the sale price becomes saleconsideration for computation of capital gain.

soumitra basu (Expert) 05 August 2011
If you want to pay capital gain tax in that case section 50C shall come into operation but if you want to invest the money either in residential house property or in specified bond, the section shall have no implication.
Yes you are correct. The value adopted by the valuation officer can in no time shall exceeded the value adapted by the registering authority for stamp duty purpose.

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