Whether profit earned from sale of land or building or both chargeable to capital gain tax?

Ans. • Profits and gains earned from sale of land or building or both are chargeable to tax under the head "Capital Gain"

• In the case of sale of land or building or both, the value determined by stamp duty authorities will be considered as full value of consideration if the following conditions are satisfied –

a) The asset transferred is land or building or both.

b) Sale Consideration is less than the value as determined by the stamp duty authority for the payment of stamp duty.

c) Stamp Duty value exceeds 105% of the consideration received or receivable on account of transfer. [Applicable from A.Y 2019-20].

• For the purpose of valuation, stamp duty valuation shall be considered on the date of registration of the property.

Exception - Where the date of agreement fixing the consideration and date of registration are not same, then the stamp duty value will be considered on the date of agreement for such transfer.

The above exception will be applicable if –

a) Full consideration or part there-of is received by an account payee cheque/draft or by use of electronic clearing system through a bank account. Or through such other electronic mode as may be ​prescribed.​  

b) Such amount is received before the date of agreement.

c) It is applicable from the A.Y 2017-2018.