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Asked by Pankaj on :Jul. 03, 2018

I have sold a building for Rs 2000000 but value d…

I have sold a building for Rs 2000000 but value determined by stamp valuation authority is Rs 25000…

I have sold a building for Rs 2000000 but value determined by stamp valuation authority is Rs 2500000. Which value should I consider for calculating capital gain?

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Jeeba Jul. 03, 2018

Your sale value for the calculation of capital gain shall be the value determined by stamp valuation authority ie. Rs 2500000.

Section 50C states that if sale consideration received by a seller on sale of land or building or both is less than the value adopted by stamp valuation authority, value adopted by stamp valuation authority would be the sale consideration received or accruing to the seller.

Therefore, capital gain shall be calculated as per stamp valuation authority. So here capital gain would be Rs 2500000 less cost/indexed cost of acquisition.

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