Property bought at less than circle rate, registry not done but stamp papers purchased as per the circle rate.

Dear Sir, If X bought a property in August 2013 for 1.1cr and the worth as per the circle rate is and was 1.65 cr, what are the tax implications? Few pointers: 1. Section 56 (2) (b) says that is the buyer got it for lesser than the circle rate, the difference will be considered as 'income from other sources' and will be taxable at 33.99%. 2. The registry is yet not done but stamp papers have been bought (august 2014) as per the circle rate. 3. From when is it applicable?

asked Jan 05 '15 at 16:52 by RuZo 111

  1. Yes, it would be taxable like gifts as it is assumed that seller has gifted extra sum (difference between circle rate and actual price) to buyer.
  2. Its applicable from FY 2014-15.

answered Jan 06 '15 at 22:59 by Pankaj Batra 5.2k320


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Asked: Jan 05 '15 at 16:52

Seen: 2,486 times

Last updated: Jan 06 '15 at 22:59