How to ascertain the stamp duty value of land (section 50C of Income tax act)

ROHIT CHOITHWANI,

28th September 2016

Legal in Jabalpur

stamp duty

how to ascertain the stamp duty value of land?

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Replies (2)

Yes, as per the Section 50C if a property is sold below the circle rate, the circle rate of the property would be considered to be the rate at which property has been sold and capital gain tax would be levied assuming that the property has been sold at the circle rate.

Sashidharan,

28th September 2016

Comment

Hi Rohit!!
Section 50C states that when a capital asset, being immovable property, is transferred for a consideration which is less than the stamp duty value adopted, assessed or assessable for the purpose of payment of stamp duty in respect of such transfer, then the stamp duty value is taken as full value of consideration under section 50C of the Income-tax Act.

AK Jain, Mumbai

28th September 2016

Comment

I am agree with Jain Sir. And it is applicable when:- 1) there is sale/transfer of land/ building or both. Hence 50C is not applicable in cases where land/building or both are transferred by gift deed.
2) The sale consideration received from the buyer is less than value adopted (or assessed/ assessable) by Stamp duty authority i.e. actual sale proceeds are less than stamp duty valuation of property.
3) The asset may be long term or short term capital asset (period of holding determines whether asset is long term( 3 yrs) or short term(

Rishi Dev,

28th September 2016