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CAPITAL GAIN CALCULATION - Income TaxExtract One of our Client has purchased 1 property from Income tax Department Auction in the year 1998-98. The consideration paid for same was ₹ 5,00,000/-( Five Lacs) however Stamp duty of ₹ 2,45,000/-is paid as per Jantri value of the property as ₹ 50,00,000/-. (Fifty Lacs) Now the property has been sold for ₹ 60,00,000/- however Stamp duty on sale has been paid as per jantri value i.e. for ₹ 70,00,000/-. At time of calculation capital gain on sale of property purchase value has been taken ₹ 5,00,000/-+245000/- i.e. consideration price plus Stamp Duty paid on acquisition and sale value was taken ₹ 60,00,000/-. Now IT Department raised query regarding Sale value that the same should be taken as ₹ 70,00,000/- i.e. stamp duty paid value and not sale consideration received i.e. ₹ 60,00,000/-. Can we apply the same criteria for purchase price consideration i.e. can we take purchase price (Cost of Acquisition) on basis of stamp duty value i.e. ₹ 50,00,000/- instead of ₹ 5,00,000/-?
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