Income tax Act Section 50C, Income Tax

[shamji bhanushali]

our client has purchased one flat in Ghatkopar mumbai. he has paid advances against his flat in year 2009 with one particular rate. Builder has given possession in year 2014 when my client has paid full amount. when agreement made in 2014 rate of stamp duty rate was high i.e.Agreement value lower then stamp act value. now mater is observe by Income tax department that it is violation of section 50 C AND it is chargeable for tax on difference amount. can you advise for this or give us any Judgment regarding section 50C AS PER MY PROBLEM.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

The department is right in demanding the differential tax.

[Ganeshan Kalyani]

It is usual practice of the builders to undervalue the property for stamp duty purpose and black money is demanded. thus how would a common man come to know about the appropriate market value while entering for agreement.