Capital gain
9 months ago
Inherted a leased property , licensee was my father followed by my mother after death of father. I became licensee in 2017 by inheritance. My father paid rs. 2,15,436/- as premium as demanded by Lessor, Govt. Of west Bengal. I become lessee of the property after their death and recorded as Lesse in govt. record. Subsequently this property is Transferred to Mr. X with a transfer Deed and consideration amount of Rs. 21,00,000/-. Deed of transfer executed on 26.09.2022. Consideration amounts received in three parts 25/09/2019- Rs. 5,00,000/ , 19/10/2019- Rs.15,00,000/- and 15.09.2022- Rs. 1,00,000/-. Now in the Deed of transfer , stamp duty etc has been assessed based on Market Value of property as Rs.58,61,363/-. Now what will be the LTCG calculation on this property:-
Based on Consideration Value or the Market Value as assessed by Register? It was a distress sale due to ecconomic situation. In fact its a Loss if considered the market value. please guide.
According to Sec 50C of the Income Tax Act, 1961, if an assessee transfer a capital asset Land or Building or both at a value less than the value adopted or assessed (in case of registry) by Stamp Valuation Authority for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall be deemed to be the Sale Consideration of the Capital Asset. So, LTCG calculation on this property shall be made on Market Value as assessed by Stamp Valuation Authority/Register.
Please consult any chartered accountant or auditor as question involves financial matter.
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